How Analyst Attention Affects Inefficient Investment of Enterprises: The Mediating Role of Financial Constraints

Abstract

This paper uses the data of Shanghai and Shenzhen A-share companies from the CSMAR database. The data range is from 2009 to 2019, studies the relationship between investment efficiency and financing constraints, and expounds on some of the problems faced by small and medium-sized enterprises today. The research uses a model to measure the optimal investment scale of the enterprise in the current period and uses the actual investment scale to gradually approach the optimal investment template to obtain the inefficient investment level of the enterprise. This paper studies the relationship between investment efficiency and financing constraints from an analyst's perspective. Research has found that analyst attention significantly impacts firms' inefficient investments. Analyst Attention and Report Attention can effectively alleviate corporate financing constraints and improve corporate investment efficiency, which is found that analyst attention and report attention have a more significant impact on small and medium-sized enterprises than on large enterprises.