Online Media Coverage,Internal Control Quality And The Behavior Of Earnings Forecast By Securities Analysts

In the context of the implementation of the new "Securities Law",the company's listing was officially changed from the audit system to the registration system,which means that the stock market will usher in a new round of expansion.As a "bridge" between corporate entities and investors in the securities market,securities analysts also put forward higher requirements for their work.However,the frequent occurrence of "black mouth" incidents and the optimistic tendency of China's securities analysts to make surpluses have led to serious doubts about the validity of the forecast of securities analysts.Therefore,it is of great significance to study the factors that affect the earnings forecast behavior of securities analysts and improve the accuracy of securities analysts' earnings forecasts to protect the interests of small and medium investors and promote the effective implementation of the new Securities Law.The existing literature shows that the effective implementation of internal control can ensure the reliability and authenticity of corporate financial information,and is closely related to the timely and clear understanding of the financial risks and earnings of thecompany by securities analysts.Will internal control affect the earnings forecast behavior of securities analysts ?In addition,as an important external mechanism of corporate governance,online media can play an active role of information intermediary and external supervision to improve the quality of internal control of the company.So,whether online media reports can affect the predict behavior of securities analysts by improving the quality of internal control of the company ?Based on the 2013-2018 Shanghai and Shenzhen Stock Exchange A-share listed companies as the research sample,this paper builds an analysis model between online media attention,internal control quality and securities analysts' earnings prediction behavior,and uses the sequential inspection method to test whether internal control It can play an intermediary role in the impact of online media reports on the accuracy of earnings forecasts of securities analysts.The results of the study found that internal control and online media,as internal and external mechanisms of corporate governance,improve the transparency of corporate information,effectively increase the attention of securities analysts,and reduce the deviation of earnings forecasts of securities analysts.It was further found that the quality of internal control plays a part of theintermediary role in the impact of online media attention on the accuracy of earnings forecasts of securities analysts,that is,online media can improve the accuracy of earnings forecasts of securities analysts through the internal control quality channel.The research results of this article are not only an expansion of the relevant theories of the earnings forecast behavior of securities analysts,but also a deeper exploration of new ways for online media to improve the accuracy of earnings forecasts of securities analysts.