The Influence Of Institutional Investor On The Accuracy Of Management Earnings Forecast

With the development of China's capital market,management earnings forecast information is widely concerned.Institutional investors,as an important participant,are more concerned about information disclosed by listed companies.Compared with general investors,institutional investors have more channels to get information and stronger ability to interpret information,which can improve corporate governance level,optimize market resource allocation and promote their effective operation.The influence of institutional investors on management earnings forecast can reduce the degree of information asymmetry between the internal and external companies,and promote the benign development of the capital market.In this paper,based on the literature,theoretical basis and system background,we distinguish institutional investors from the invested company property right,institutional ownership stability and ownership independence,so we can find the influence of heterogeneous institutional investors on the accuracy of management earnings forecast.In this paper,the A-share listed companies in Shanghai and Shenzhen stock market,which have been released for 2012-2016 years,are selected as the research objects.Through empirical analysis,we get the relationship between institutional investors' shareholding and management earnings forecast bias.The empirical results show that institutional investors on the overall has played a certain role in prediction accuracy,further distinguished by the investment company property right,institutional investors can significantly reduce the deviation of non state-owned holding companies management earnings forecast,improving the prediction accuracy,but the state-owned company is not significant.According to the comprehensive effect of institutional investors holding time and the share proportion,the effect is divided into stable and transaction type institutional investors according to the stability of the stock.The stable institutional investors can significantly reduce the earnings forecast error,and improve the forecasting accuracy.But the transaction type of institutional investors is not significant.According to the independence of interest relationship between institutional investors and the invested units,we found that stock holding of the pressure boycott institutional investors in with strong independence can significantly improve the prediction accuracy,but the effect of pressure sensitive institutional investors in weak independence is not significant.The research results show that institutional investors play a certain role in corporate governance,but the role of different types of institutional investors is still different.According to the conclusion,this paper puts forward the following suggestions: it should continue to encourage the development of institutional investors,and strengthen their internal management to guard against irregularities.The government supervision departments should continue to improve laws and regulations for the development of institutional investors and earnings forecast disclosure system.We should guide and standardize the disclosure of earnings forecasts,increase the intensity of illegal punishment,and improve the quality of information disclosure.