Analyst Attention and Investment Efficiency of SMEs: Evidence from the Role of Financial Constraint

Abstract

The context of this paper is to explore the impact that financial analysts have had on major companies and the magnitude of that impact based on data from 2011-2019. This paper used a step-by-step approach of making models and analyzing data tables to apply theory and analysis to draw conclusions. It also involves extensive reading and extracting of literature and data sources. The main finding of this paper is that financial analysts do help the success and growth of a business to a great extent. It is one of the essential aspects and elements. It is even more necessary for those companies that have financial constraints. The impact is even greater for small and medium-sized companies than for large companies. Finally, policy advice and investor advice is a very good part of the analyst process for small and medium-sized businesses that have a clear position. It makes the whole business more likely to succeed with fewer detours.