| In 2014,Major reforms have taken place in China’s securities regulatory system.For adapting the regulatory situation changes and system adjustment requirements,better service for investors,the Shanghai Stock Exchange announced the formal implementation of the industry supervision on January 5,2015.Up to now,it has been more than 6 years since the industry supervision.It is of great significance to test the economic consequences and institutional effects of this supervision measure.This paper discusses how the accuracy of analysts’ earnings forecasts will change after the the industry supervision is implemented.It has been confirmed that after the industry supervision,the accuracy of analysts’ earnings forecasts has indeed improved dramatically.In addition,the effect will be more pronounced for companies with high industry concentration and those with auditors with no industry expertise.Besides,this paper further discuss that after the industry supervision,analysts will significantly reduce their reliance on historical earnings information when making future earnings estimates of listed companies.At the same time,it is confirmed that the industry supervision has a positive effect on the accuracy of analysts’ forecast mainly by improving the transparency of company information.On the one hand,this paper can make contribute to enriching the study of analyst prediction.On the other hand,it has enriched research related to the industry supervision.Besides,the implementation effect of this policy is also verified.It is hoped that this article can provide some reference for the development and improvement of China’s securities regulatory system. |
