The Study Of The Impact Of Analysts' Coverage On The Enterprises' Financing Problem

With the development of China's economy,the operating mechanism of capital market is gradually on the right track,but it is still not perfect.2019 is just the 10 th anniversary of the opening of China's A-share GEM,The financing problems of small & medium-sized listed enterprises are still difficult.In China's capital market,enterprises have problems such as high financing cost,bad preference of financing methods,etc.while capital is the blood of an enterprise's operation and the lifeblood of an enterprise,which will undoubtedly have a significant impact on the capital operation,operation situation,profitability,etc.Improving the financing of enterprises has become increasingly important.The main reason for the difficulty of enterprise financing lies in the information asymmetry between investors and enterprises.As a crucial information intermediary in the capital market,securities analysts play an irreplaceable role.Analysts can find out information that is difficult for investors to obtain with their own professional advantages and information discovery ability,and form research reports for wide dissemination.Securities analysts have greatly improved the efficiency of market operation.This paper takes A-share GEM listed companies as the research sample,intercepts the data from 2014 to 2018,based on the attention of analysts,through studying domestic and foreign literature,analyzing relevant theories,conducting empirical research,adopting descriptive statistics,correlation analysis,multiple regression analysis,robustness test and other methods,discusses several major financing problems of enterprises: The impact of analysts' coverage on corporate equity financing,debt financing,and corporate financing choices.Through the study of the above issues,this paper finds that analysts' attention can indeed affect the financing of enterprises.The higher the analysts' attention,the lower the cost of equity or debt financing,and such enterprises are more inclined to financing through equity.The conclusion is similar to most of the existing literature.Based on this conclusion,this paper gives policy suggestions: from the perspective of enterprises,they should improve their internal governance,attract analysts' attention,and strengthen the interaction and cooperation with analysts in the financing stage,which can effectively reduce the financing cost.In addition,they should also combine the enterprise's own situation to choose the appropriate financing mode;From the perspective of analysts,it is self-evident that it is important to improve the professional quality of analysts and the overall environment of the industry;from the perspective of investors,it is also necessary to strengthen their professional knowledge,so as to make reasonable judgments in investment,not blindly follow the trend of investment,not fully believe in the reports issued by analysts,and enrich their investment experience;From the perspective of supervision,they should strengthen the management of enterprises and analysts,standardize the information disclosure system of enterprises,and introduce laws and regulations that strictly emphasize the professional integrity of securities practitioners;from the perspective of the government,they should focus on legislation,rely on national forces to enforce,and make up for the loopholes and shortcomings of current laws.Through the research of this paper,we find out the shortcomings,and the prospect of future research,hoping to inspire the follow-up scholars,continue to explore the unknown issues,and continue to promote the development of China's capital market.