Research On The Impact Of Private Enterprise Party Organization Embeddedness On The Accuracy Of Analysts’ Earnings Forecasts

With the continuous construction of the new normal pattern of China’s economic development,the CPC Central Committee has made important arrangements for deepening reform and development under the new economy,pointing out that the party organization embeddedness is an important aspect to demonstrate the confidence of my country’s economic development path,and it is also an important aspect of my country’s companies in the new era.Development trends of governance models.There is a wide range of information spillovers in corporate governance,which can be transmitted to the capital market through earnings information,stock prices,etc.Some scholars have studied the impact of party organization embeddedness on corporate behavioral decision-making and performance,but no research has been conducted on the spillover effects radiated by it.In-depth study,this is an important issue that needs to be addressed in the current improvement of the modern enterprise system and the promotion of grass-roots party building work.Guiding small and medium investors to change their investment concepts for long-term and valuable investments is the foundation for building a standardized,transparent,open,dynamic and resilient capital market.Securities analysts rely on their professional information collection and interpretation capabilities to guide investors rationally.It plays an important role of information intermediary and guidance in investment.Accounting information is an important information source for analysts to make profit forecast.The quantity and quality of information,both with the operating environment of the forecasted companiesdirectly affect the accuracy of its prediction,which are widely available in the market.In the case of information asymmetry,good corporate governance will provide analysts and other information intermediaries with a more stable forecasting environment and better information output,that is,the spillover effect of corporate governance on the analyst group.As "corporate governance with Chinese characteristics",enterprise party organizations play an important role in the reform of my country’s unique political system and economic system.Whether it is an institutional force or its right to participate in major business decisions,it has affected the In terms of corporate performance and the effect of communicating accounting information,individual scholars focus on the impact of corporate party organization embeddedness on analysts’ earnings forecasts.In the new era,how to improve the way for enterprise party organizations to play a leading role,and how to integrate party leadership into the modern corporate governance system and pass to capital markets has been the focus of discussion in the practical and academic circles,and this is also an unavoidable issue in the process of deepening corporate governance reform.This paper takes Chinese private enterprises as a sample,based on the existing theoretical and practical basis,to study the wide-ranging spillover effects of the party organizations,to discuss the relationship between the party organization’s embeddedness and the accuracy of analysts’ earnings forecasts,and to explore the its specific action path.In addition,this paper further clarifies the difference between two different party organization embedding methods,"two-way entry" and "cross-serving",and based on the dual perspectives of enterprises and analysts,it discusses the characteristics of party secretaries and analysts in the embedded corporate governance of party organizations.The role of heterogeneity in the relationship between analysts’ earnings forecast accuracy.Research indicates:(1)Party organizations’ participation in corporate governance can significantly improve the accuracy of analysts’ earnings forecasts.In companies with “two-way entry and cross-serving”,analysts’ earnings forecasts are more accurate,reflecting an external governance effect;path analysis found that The information disclosure,resource integration and other effects generated by the party organization’s participation in corporate governance are reflected by reducing the risk of performance fluctuations and improving the accounting information output quality by enterprises,that is,the embedded party organization improves the analyst’s earnings by improving the quality of information that analysts rely on and providing a stable forecasting environment.prediction accuracy.(2)In order to further clarify the heterogeneity of the embedded governance effect of the party organization,this paper studies the embedded method and party secretary characteristics(tenure,age,education)based on the characteristics of the party organization,and finds that: The degree of "two-way entry" has no significant relationship with the accuracy of analysts’ earnings forecasts,but the deeper the degree of "cross-serving",the more accurate the analysts’ earnings forecasts,and the longer the term of the party secretary,the higher analysts’ earnings forecasts accuracy;in addition,By further mining the characteristics of the analysts,it is also found that for analysts with low education and less experience,the accuracy of earnings forecast is more obviously affected by the embeddedness of the party organization.This paper deepens the research on the influence of the party and government system on corporate behavior,enriches the research perspective of analysts’ earnings forecast,and provides an important reference for analysts to provide objective and accurate forecast reports.It will help to give full play to its information intermediary role and help to create a standardized,transparent,open,dynamic and resilient capital market.