Study On The Relationship Between Cost Stickiness,Earnings Information Quality And Analyst Earnings Forecast Quality

In recent years,as one of the main tasks of the supply-side structural reform,"cost reduction" requires enterprises to change the production and operation mode of blindly manufacturing and hoarding idle resources as soon as possible,in order to further reduce the stickiness of costs.At present,Chinese capital market is still vulnerable and effective,information asymmetry is still serious,the analyst as the internal and external information processing and transportation of the listed company "center",can improve the efficiency of capital market resources allocation to a certain extent.The cost of production of listed companies is the main source of information for analysts to forecast earnings.The relationship between cost stickiness and the results of analysts’ forecasts has become a topic of common concern for internal and external stakeholders.Based on the previous research results,this paper focuses on the relationship between cost stickiness and the quality of analyst earnings forecast,and tries to explore the internal influencing mechanism between the two.First of all,on the basis of combing internal and external literature and elaborating related concepts and theories,this paper proposes the research hypothesis.Secondly,the research design is carried out,the measurement method of relevant variables is introduced,and the regression model is given.Then,the A-share listed companies in Shanghai and Shenzhen during 2011-2020 are selected as research samples.Based on the methodology of intermediary effect test,the relationship between the cost stickiness of listed companies,the quality of earnings information and the quality of analysts’ earnings prediction is analyzed through descriptive statistics,correlation analysis,regression analysis and robustness test.The conclusions of this paper are as follows:(1)the cost stickiness of listed companies will lead to the error and divergence of analysts’ earnings forecasts,that is,reduce the quality of analysts’ earnings forecasts;(2)Earnings information quality plays a partial intermediary role in the relationship between the two.In addition,by adding internal governance and market competition intensity as moderating variables in the intermediary test,it is found that internal corporate governance dominated by the board of directors can reduce the cost stickiness and reduce the earnings forecast errors and disagreements of analysts caused by the quality of earnings information.The impact of cost stickiness on analysts’ forecasts through earnings information quality is more significant in high intensity market competition.Finally,suggestions are put forward from the perspectives of enterprises,analysts and external investors to further improve the efficiency of the capital market.At the end of this paper,the shortcomings of the research content are clarified,and the future research is prospected,hoping to study the impact of cost stickiness on analysts’ forecasts more systematically,and try to establish a new earnings forecast model,so as to effectively improve the quality of analysts’ earnings forecast and help the better development of the analyst industry.This paper studies from the perspective of cost stickiness,discusses the impact of cost stickiness on the quality of analysts’ earnings forecast,expands the theoretical research of cost stickiness,combines management accounting with financial accounting,and speeds up the research process of management accounting.At the same time,improve the analyst earnings forecast model.It has certain reference value and practical significance for enterprises to control cost,analysts to improve the quality of earnings forecast and investors to make prudent decisions.