Analyst Tracking And Capital Market Information Efficiency

As an important information transfer intermediary between investors and listed companies in the capital market,securities analysts can obtain company information through a variety of ways,such as field researching,communicating with company insiders,and researching company announcements,etc.Then securities analysts can dig out more Company Characteristics Information,and provide investors with decision-making reference by publishing research reports.Compared with developed countries,Chinese securities market is still in the development stage because it started later.There are many deficiencies and problems in Chinese securities market.Because investors lack professional knowledge reserves,they are easily influenced by herd mentality and have irrational investments.As a result,the stock prices of listed companies cannot effectively reflect their real profitability and actual value,and there is a high synchronization of stock prices in the entire market.Under these circumstances,securities analysts are an important information communication bridge between investors and listed companies,which can transmit company information to investors more effectively.They can increase the channels for investors to obtain information,and improve the "quality" and "quantity" of the information investors obtain.In order to study the relationship between analysts’ tracking behavior and capital market information efficiency,this paper takes A-share main board listed companies from 2015 to 2020 as the research object to explores whether analysts’ tracking can reduce stock price synchronicity.This paper firstly constructs the relationship model,and conducts statistical analysis and empirical analysis on the sample data to explore the relationship between the quantity and quality of analysts’ tracking behavior and the information efficiency of the capital market.This paper also focuses on exploring whether the impact of star analysts’ tracking analysis on stock price synchronization will be different compared with ordinary analysts,because star analysts have better information acquisition and analysis capabilities than other analysts,and have greater influence on the market.Then,in order to ensure the validity of the results,this paper will also perform endogeneity processing and robustness testing.After completing the basic research,this paper will further explores whether the internal factors of the company will affect the analysts’ influence on the stock price synchronization.The specific method is that the samples are grouped and regressed according to the synchronization of stock prices and internal control.At the end of the article,I will draw the research conclusion of this article,and put forward some suggestions to help the market develop more healthily.Through the research on A-share main board listed companies,this paper draws the following four conclusions.(1)There is a significant negative correlation between the number of analysts following a listed company and the stock price.(2)Compared with non-star analysts,star analysts have a greater impact on the synchronization of stock prices in the securities market.(3)There is a significant negative correlation between the analyst’s forecast accuracy and the stock price synchronization.(4)The internal factors of listed companies will affect the efficiency of analysts to transmit company information.Specifically,when the company’s equity concentration is lower than 50%,the absolute value of the correlation coefficient is significantly higher than that of companies with equity concentration higher than 50%,and the former is significantly higher than the latter.In the absence of deficiencies in the company’s internal control,the negative correlation between the number of analysts and stock price synchronicity is also significantly stronger than in companies with flaws.