Research On Impact Of Analyst Earnings Forecast Revisions On Stock Price

Stock market is a barometer of the economic conditions of a country.In the field of economics,its efficiency in information transfer has received widespread attention.As we all know,stock market in China started late.Securities analysts,as information mediators for listed companies and investors,play an important role in information transmission in the stock market.They use professional knowledge to quickly interpret the disclosed company reports,publish Forecasts and Forecast Revisions that are open to all market participants,provide investment reports that reasonably reflect the intrinsic value of the stock,help companyies' financial information flow quickly to investors,prompt investors to make investment decisions quickly,thereby increasing the efficiency of information transmission in the stock market.It can be seen that analyst earning forecast revisions plays a key role.Firstly,combining Efficient Markets Hypothesis,Information Asymmetry Theory,Accounting Information Validity,Herd Effect,Asymmetry of Investors' Information Sensitivity and the development status of Chinese stock market,the article theoretically analyzes the impact of the Forecast Revisions and the amount of information on the stock prices.Then,the article selected non-financial non-ST&PT listed companies in Chinese A-share market from 2011 to 2017 to screen Analyst Earnings Forecast Revisions samples from the CSMAR database on which Stata14.0 software was used to perform T-test and fixed-effect regression analysis to verify the hypotheses: First,Analyst Earnings Forecast will have a significant impact on stock prices.Second,the Rate of Analyst Earnings Forecast Revisions should have a positive correlation with the stock price.There is a serious stock price drift in the Rate of Analyst Earnings Forecast Revisions,which leads to low market absorption efficiency.Third,the amount of information contained in the Analyst Earnings Forecasts can increase the speed of market information absorption.Fourth,the market is more sensitive to bad news than good news.Finally,the relevant policy recommendations are proposed from the aspects of improving the accuracy of the Rate of Analyst Earnings Forecast Revisions,strictly controlling the amount of information contained in the Analyst Earnings Forecasts,guiding the rational investment of individual investors and strengthening the supervision of securities companies and their analysts.