Do Analyst Attention Help Improve the Growth of Enterprises: Perspective of Financial Constraint

Research Article
Open access

Do Analyst Attention Help Improve the Growth of Enterprises: Perspective of Financial Constraint

Haoran Cao 1 , Ellesse Chen 2* , Haochen Huang 3 , Hanlin Wang 4
  • 1 Beijing Royal School    
  • 2 Lakefield College School    
  • 3 Harrow International School Beijing    
  • 4 Shanghai Pinghe Bilingual School    
  • *corresponding author EEChen@lcs.on.ca
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/12/20230650
AEMPS Vol.12
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-67-6
ISBN (Online): 978-1-915371-68-3

Abstract

Based on the data of Chinese listed companies obtained by CSMAR, this paper examines the impact of analyst concerns on the growth rate of enterprises' main businesses. The OLS estimation results show that both analysts' attention and research reports' attention have a significant positive impact on the growth rate of the main business of the enterprise. Heterogeneity analysis shows that analysts' concerns have a greater impact on SMEs with total assets below the 50th percentile that year. Mechanism analysis shows that the positive impact of analysts on enterprises is achieved by easing financing constraints. Therefore, this paper believes that analysts' attention is the key factor to promote the growth of SMEs, and investors can also pay more attention to these enterprises. For small and medium-sized enterprises, financing constraints are a very difficult problem. This paper provides a new perspective and empirical evidence to ease the financing constraints of enterprises, especially SMEs.

Keywords:

analyst, growth rate, financial constraint

Cao,H.;Chen,E.;Huang,H.;Wang,H. (2023). Do Analyst Attention Help Improve the Growth of Enterprises: Perspective of Financial Constraint. Advances in Economics, Management and Political Sciences,12,346-355.
Export citation

References

[1]. Randell, D. H. (1961). Evolution of the Analyst. Financial Analysts Journal, 17(2), 67-75.

[2]. Baidu Wenku. Definition of ST Shares. Accessed September 12, 2022. https://wenku.baidu.com/view/0178891efc4ffe473368ab11.html.

[3]. Léon Walras. (2011). Elements of Pure Economics. London, Routledge.

[4]. Farre-Mensa, Joan, and Alexander Ljungqvist. (2013). Do Measures of Financial Constraints Measure Financial Constraints? Cambridge, National Bureau of Economic Research, Inc.

[5]. Hadlock C. and J Pierce. (2010). New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index”. Review of Financial Studies, 23(5):1909-1940.

[6]. Hu H, Cai D. (2022). Intellectual capital, executive agent motivation and inefficient investment. Accounting communication, (16): 88-93.

[7]. Yao X. (2022). Institutional background, management characteristics and company investment efficiency. Friends of accounting, (15): 110-116.

[8]. Shao C, He Y. (2022) Institutional investor network and enterprise inefficient investment. Friends of accounting, (14): 44-53.

[9]. Wang Y. (2022). The impact of China's industrial policy on enterprises' inefficient investment. Economic issues, (07): 80-87.

[10]. Fan Y, and Du X. (2022). Comparability of accounting information, operational cash flow manipulation and growth of family businesses Accounting Communication (17), 39-43.

Cite this article

Cao,H.;Chen,E.;Huang,H.;Wang,H. (2023). Do Analyst Attention Help Improve the Growth of Enterprises: Perspective of Financial Constraint. Advances in Economics, Management and Political Sciences,12,346-355.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-67-6(Print) / 978-1-915371-68-3(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.12
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Randell, D. H. (1961). Evolution of the Analyst. Financial Analysts Journal, 17(2), 67-75.

[2]. Baidu Wenku. Definition of ST Shares. Accessed September 12, 2022. https://wenku.baidu.com/view/0178891efc4ffe473368ab11.html.

[3]. Léon Walras. (2011). Elements of Pure Economics. London, Routledge.

[4]. Farre-Mensa, Joan, and Alexander Ljungqvist. (2013). Do Measures of Financial Constraints Measure Financial Constraints? Cambridge, National Bureau of Economic Research, Inc.

[5]. Hadlock C. and J Pierce. (2010). New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index”. Review of Financial Studies, 23(5):1909-1940.

[6]. Hu H, Cai D. (2022). Intellectual capital, executive agent motivation and inefficient investment. Accounting communication, (16): 88-93.

[7]. Yao X. (2022). Institutional background, management characteristics and company investment efficiency. Friends of accounting, (15): 110-116.

[8]. Shao C, He Y. (2022) Institutional investor network and enterprise inefficient investment. Friends of accounting, (14): 44-53.

[9]. Wang Y. (2022). The impact of China's industrial policy on enterprises' inefficient investment. Economic issues, (07): 80-87.

[10]. Fan Y, and Du X. (2022). Comparability of accounting information, operational cash flow manipulation and growth of family businesses Accounting Communication (17), 39-43.

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.