An Empirical Study On The Influence Of Accounting Conservatism On Analysts' Earnings Forecast

With the development of economy in China,the capital market has reached a new boom in recent years,the securities analysts as the backbone of the capital market to connect the listed companies and investors.Investors in order to know the company,understand the business and make decisions on securities analysts' earnings forecasts put forward higher requirements.The accuracy of the continuous development of China the mechanism,strengthening market supervision power that the analyst has got more and more attention of investors.In order to better serve the capital market,researching analysts' earnings forecast is very important.But the conservatism principle is an important principle in enterprise accounting,is affecting the quality of accounting information,can reduce the degree of information asymmetry.The quality of earnings forecast is mainly affected by the self recognition judgment ability,information disclosure and private collected information capacity,accounting conservatism is also a main factor affecting the company's information disclosure quality,so this paper from the perspective of accounting conservatism focuses on Accounting Conservatism prediction on analysts' earnings.The enterprise life cycle into the study,focuses on the impact of enterprises in different stages of accounting conservatism prediction on analysts.In 2007-2014 A shares listed company as the research object,adopt the method of empirical study using Stata regression analysis,the final conclusions are as follows:(1)under the same conditions of accounting conservatism and earnings forecast error and divergence is negatively correlated.Accounting conservatism can inhibit the earnings forecast inaccuracy.(2)the growth period,mature period and decline period of three stages of accounting conservatism on analysts' earnings forecast error and the influence degree of divergence different,but are negatively correlated.(3)in the three cycle,recession period accounting conservatism of analyst earnings forecast error and the influence degree of the deep,from the growth stage to mature stage to recession accounting conservatism on analysts' earnings forecast the influence degree of divergence is more and more strong.Through the study,this paper has practical significance for investors,analysts and listed companies.Helping investors to make more accurate investment decisions,get a better return on investment;For analysts,it is possible to correctly identify the factors in the process of earnings forecasts,and then to effectively predict,provide a proposal for the accuracy of analyst earnings forecasts;Listed companies,especially in the recession of the enterprises can enhance the robustness of accounting information,which helps to improve the quality of financial information disclosure,which can attract more analysts,analysts tracking helps to reduce the cost of capital,improve the value of the company.