Research On The Impact Of Analysts' Earnings Forecast On Corporate Finance Constraints

One of the major difficulties in the market is the information asymmetry between enterprises and investors.Information asymmetry has an impact on corporate financing constraints to a certain extent,while corporate financing constraints are directly related to whether the capital needs of enterprises to expand their own development can be met and whether they can break away from financing difficulties.From this point of view,it is a new hot spot to study how to alleviate corporate financing constraints from the perspective of information environment.As the transmitter of market information,analysts are getting more and more attention from investors.The team of analysts has gradually grown,and its role has gradually been recognized by the society.Enterprises use information media to disseminate relevant financial information of enterprises to obtain more funds.Practice has also become common.However,due to the late start of China's securities analysts,specific empirical research has only appeared since 2004,and there have been many problems in the development of analysts.Domestic scholars and investors still have controversy and doubts about the analyst's forecast behavior.Therefore,it is necessary for research analysts to play a role in alleviating the financing constraints faced by enterprises,and whether analysts' earnings forecasts will affect corporate financing methods and financing costs.This paper selects the relevant data of the Shanghai and Shenzhen A-share main board listed company for the six-year period from 2012 to 2017 as a research sample,and empirically examines the impact of analysts' earnings forecast behavior on corporate financing constraints.KZ index is a comprehensive financial indicator combined with qualitative information and quantitative information to measure the degree of financing constraints of enterprises.In order to avoid the limitation of single variable to measure the degree of corporate financing constraints,this paper reconstructs KZ index suitable for China's national conditions based on sample data.As a measure of financing constraints.The interpret variable analyst earnings forecast is measured from three dimensions: analyst tracking quantity,analyst earnings forecast accuracy,and analyst earnings forecast divergence.The empirical part of this paper firstly conducts a regression test on the analyst's earnings forecast and financing constraints,and then performs a regression test on the analyst's earnings forecast and internal/external financing methods,single/dual financing methods,and equity/debt financing methods,respectively.The adjustment effect of the analyst's earnings forecast on the impact of financing constraints is tested.Finally,inthe further study,the adjustment effect of financing methods on the impact of analysts' earnings forecast on financing costs is tested.The research findings in this paper are as follows:(1)Analyst earnings forecast can effectively alleviate financing constraints.(2)The higher the analyst's earnings forecast quality,the more willing companies to conduct external financing,and the trend of dual financing and equity financing is more obvious.(3)Equity financing by enterprises can enhance the effect of analysts' earnings forecasts to alleviate financing constraints.(4)Equity financing by enterprises can enhance the effect of analysts' earnings forecasts to reduce financing costs.The above results are still robust when the substitution variables are selected for testing.