Perspective Of Analyst Research Articles

ESG rating disagreement and analyst forecast quality

This study examines the effect of ESG rating disagreement on analysts' earning forecast using a sample consisting of ESG ratings of Chinese A-share listed companies from 2015 to 2021 by six rating agencies including RSK, SynTao Green Finance, Hexun, Bloomberg, Huazheng and Wind. We find that greater ESG rating disagreement is linked to increased forecast error and dispersion among analysts. The mechanism test confirms that ESG rating disagreement exacerbates information asymmetry, leading to greater forecast inaccuracies and dispersion. Further analysis reveals that the negative impact of ESG rating disagreement is more pronounced in companies with worse information environments, while experienced and diligent analysts, alongside star analysts, can mitigate such negative effect of rating disagreement. Our findings contribute to the literature on ESG rating disagreement from an analyst's perspective, providing empirical evidence from emerging capital market about the economic consequences of ESG rating disagreement.

Corporate financialisation, market attention and analyst tracking

AbstractAs an effective external governance factor, the effectiveness of analysts' governance and tracking options has been one of the most important topics of research. In recent years, there has been an influx of capital from real companies into finance, real estate and other industries related to the virtual economy, which has a significant impact on the financial position of companies and can also affect analysts' tracking choices. This paper takes A‐share listed companies from 2010 to 2021 as the research object and finds that as the financialisation of enterprises deepens, the number of analysts' tracking decreases; however, with the increase of market attention, the negative impact of the financialisation of enterprises on analysts' tracking will be weakened. Further research shows that, first, financial risk plays a mediating role between corporate financialisation and analyst tracking, in that corporate financialisation increases financial risk, which in turn leads to a decrease in the number of analyst tracking; second, as institutional investors have a greater influence on analysts, the impact of corporate financialisation on analyst tracking is weakened as the shareholding of institutional investors increases; finally, that holding two different types of financial assets, short‐term and long‐term, also has different consequences. The findings of this paper examine the impact of corporate financialisation from the analyst's perspective, confirming the identification and selection capabilities that analysts have.

Consequences of firm-specific stock price crashes on analyst forecasts: Evidence from China

The phenomenon of stock price crash events (SPCs) has always attracted market attention, but existing research mainly focuses on its causes or determinants and rarely examines the consequences of SPCs. This study aims to fill this gap by examining the consequences of firm-specific stock price crash events (SPCs) on analyst forecast accuracy. Using the sample of analysts and listed companies from 2001 to 2020 and employing a difference-in-differences design, we find that after the company’s stock price crashed, the analyst forecast error decreased and the accuracy increased. For analysts who have not conducted site visits before SPC, and have no geographical advantages, this effect is more obvious, thus validating our hypothesis following analyst attention theory. Additional analysis shows that SPCs stimulate forecast accuracy more significantly for lowly-reputed analysts than for highly-reputed analysts. Channel analysis documents that, for the aforementioned group of analysts, the enhancement effect of SPCs on analyst forecasts is mediated by analyst effort increasing. This study adds to the evidence that SPCs bring positive externalities from the analyst perspective, that is, SPCs attract the attention of some analysts and improve their forecast accuracy. This study also enhances our understanding of analyst behavior under uncertainty, finally enriching the literature on the determinants of analyst forecast accuracy.

Perspectives of Behavior Analysts and Mental Health Specialists on Collaborating to Support Students with Intensive Intervention Needs

Interdisciplinary collaboration is critical to address the multiple and varied needs of students with social/emotional and behavioral (SEB) challenges. Yet little is known about the nature of collaboration between two specialist groups who commonly support them: behavior analysts and mental health specialists. Considering expectations for collaboration, and the potential challenges unique to this partnership, we conducted a series of interviews in the U.S. state of Tennessee to explore these specialists’ experiences and perspectives around collaboration. We used a qualitative description approach, which led to identifying themes related to (a) specialists’ preparation to collaborate, (b) facilitators and barriers to effective collaboration, and (c) supports needed to collaborate more effectively in their current roles. Specialists from both groups felt their pre-service training inadequately prepared them to collaborate with one another. They identified several factors that impacted their ability to meaningfully collaborate and expressed needs for cross-discipline education, collaborative conversations, and training on “soft skills” to partner more effectively. We highlight distinct and overlapping perspectives within and across themes between behavior analysts and mental health specialists and discuss implications for improving the quality of these important partnerships.

Analysis of the Concept and Theoretical Perspectives of Insecurity and Sustainable Development

This paper analyzed the concept and theoretical perspectives of insecurity and sustainable development. Conceptual analysis does not result with the new definition. It is also not a comparative analysis of definitions with the purpose of formulating an all-embracing definitions. Instead, it formulates a common denominator which expresses “common conceptual distinctions underlying various conceptions and perspectives of insecurity. Thus, the objective of the paper is to examine the views, opinion and perspectives of scholars, analysts and institutions on the concept of insecurity and sustainable development. The paper to established nexus between the two concepts. The paper examined various empirical literatures and contemporary sociological theories for the explanation and understanding the link between insecurity and sustainable development. The paper discovered that there is a link between insecurity and sustainable development. Insecurity negatively affect sustainable developmental stride. Thus, it concluded that the link between insecurity and sustainable development is strong and thus should not be undermined.

Healthcare analytics: A techno-functional perspective

The use of data analytics, particularly Artificial Intelligence (AI), has significantly transformed decision-making in healthcare. However, academic scholarship has expressed concerns over the misalignment of research priorities and their impact on data usage and choice of analytics. On the one hand, an inadequate understanding of healthcare themes and algorithmic nuances has posed difficulty for healthcare professionals to evaluate AI solutions and understand their generalizability and potential biases. On the other hand, the abundance of analytical tools, their complexity, and a misalignment between data type and analysis methods have presented major challenges for analysts in selecting a suitable method. As a result, healthcare research has mostly developed in silos. We propose a techno-functional framework that combines the perspectives of analysts and healthcare professionals, identifies key research themes (i.e., healthcare delivery, patient engagement, data management, market design, and policy and governance), and presents critical research questions that can guide future studies. We also propose a schema for segmenting analysis techniques based on data type and analytical complexity. This schema may help analysts select a suitable analysis technique and data to solve a specific problem. Our study aims to improve the understanding of healthcare analytics among researchers, analysts, and healthcare professionals and present a roadmap for future research.

Bank risk aggregation based on the triple perspectives of bank managers, credit raters, and financial analysts

Previous studies have incorporated only textual risk information disclosed by bank managers into bank risk aggregation. Besides bank managers, credit raters and financial analysts are important sources of risk information. Thus, this study expands the sources of textual risk disclosures in bank risk aggregation to include the triple perspectives of bank managers, credit raters, and financial analysts to obtain more reasonable bank risk aggregation results. By aggregating credit, market, and operational risk in the U.S. banking system, we find that disregarding textual risk disclosures from credit rating reports and financial analyst reports leads to biased bank risk aggregation results.

Native observers’ evaluations of ritual frame indicating expressions in Chinese

Abstract Ritual frame indicating expressions (henceforth RFIEs) is a concept that re-conceptualizes expressions that are conventionally understood as politeness markers and provides insight into the interface between expressions and politeness. This study supplements previous studies on RFIEs, which are mostly conducted from an analyst perspective, by analyzing native observers’ evaluations of a participant’s use of Chinese RFIEs in the speech act of request. It is found that the use of RFIEs was evaluated as either excessively limao (Chinese politeness1) or limao. The underlying reason for the former evaluation is that the expressions were interpreted as deference markers, and the underlying reason for the latter evaluation is that the expressions were interpreted as civility markers. This study demonstrates that, at least in the speech act of request, RFIEs may indicate different ritual frames for different native observers, which calls for the incorporation of the (meta)participant’s perspective in the study of RFIEs. It also supplements the current view on the usage of conventional politeness-related expressions in Chinese.

How Does Enterprise Digital Transformation Affect Total Factor Productivity? Based on the Information Intermediary Role of Analysts’ Attention

In the era of Industry 4.0, digital transformation has become an important strategic choice in driving enterprise development. However, there are few studies on how digital transformation affects the total factor productivity of enterprises. In order to fill this theoretical gap, this study explored the impact of digital transformation on total factor productivity from the perspective of information transmission that analysts focus on. Based on data from Chinese A-share listed companies from 2012 to 2021, this work constructed a fixed effects model and a mesomeric effect model. The experimental results show the following: (1) the digital transformation of enterprises significantly improves total factor productivity; (2) the attention of analysts has significantly improved the total factor productivity of enterprises; (3) enterprise digital transformation can significantly improve analysts’ attention, which plays an intermediary role between enterprise digital transformation and total factor productivity; (4) the heterogeneity analysis showed that digital transformation has a more significant promoting effect on the total factor productivity of tertiary industry enterprises and enterprises with lower competitiveness in their respective industries. For the first time, this study explored the mechanism by which digital transformation impacts total factor productivity from the perspective of analysts. It is necessary to encourage enterprises to attach importance to the role of analysts in information transmission in the process of digital transformation. It is suggested that enterprises formulate strategies according to the characteristics of their industries in digital transformation, and the government should formulate differentiation strategies according to the different industries and the different levels of competition between industries in the national economy.

Difference Analysis in Risk Focus Based on Text Disclosure Frequency: A Triple Perspectives of Bank Managers, Financial Analysts, and Credit Raters

This study aims to explore the differences in risk focus among bank managers, financial analysts, and credit raters by comparing the similarity of text frequency of bank annual reports, financial analysts' reports, and credit rating reports. We use the Vector Space model to vectorize the text. And we conducted the Cosine similarity measurements to get the variation of annual risk focus change of unilateral perspective and risk focus difference of the three parties. In the empirical analysis, we collect 204 Form 10-K filings, 193 credit rating reports and 193 credit rating reports from 2006 to 2022. The empirical results show that the bank risk focus perceived by bank managers, financial analysts and credit raters changes over time. Besides, the similarities of risk focus among bank managers, financial analysts and credit raters these three parties are quite low, especially for financial analysts and credit raters. Thus, our empirical findings found that bank managers, financial analysts and credit raters have different judgements on risk. It indicates that the comprehensive use of the information disclosed by the three parties can provide a more comprehensive evaluation of bank risk.

Difference Analysis in Bank Risk Attitudes: A Triple Perspectives of Bank Managers, Financial Analysts, and Credit Raters

As the three important sources of information in the financial market, the textual information disclosed by bank managers, financial analysts, and credit raters conveys their respective perceptions and judgments of bank risks, which has important value in measuring bank risks. Based on the text information about bank risks disclosed by the managers, financial analysts, and credit raters, this paper studies the differences in risk attitudes in bank annual reports, financial analysts' reports, and credit rating reports from the dimension of sentiment analysis. To summarize the emotional attitude of the text, we first calculated the intonation value of each bank risk factor by counting the number of positive and negative words in the L&M dictionary, which is specially used in the field of financial accounting. Then, an emotion recognition method based on thesaurus and grammar rules – Vader emotion score method is used to analyze the text's emotions. Then, to obtain the similarity between the text information disclosed by bank managers, financial analysts, and credit raters, an emotion vector is used to measure the text emotion similarity. In the empirical analysis, a total of 610 reports of U.S. banks from three parties over the period 2006-2023 are collected. The experimental results indicate that: First, compared with analyst reports and credit rating reports, bank annual reports tend to use a more positive tone when disclosing bank risks, showing a more optimistic mood. Second, the emotional attitude of analyst reports and credit rating reports is more consistent and similar. Third, the average level of emotional similarity among the three is high, but there are often large fluctuations and differences in the years of financial environment turbulence.

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

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.

Star Analysts’ Voting in Emerging Market: A Perspective of Analysts’ Optimistic Bias

ABSTRACT We examine the effect of fund managers’ voting on the optimistic bias of sell-side analysts by exploiting the exogenous event of New Fortune Magazine suspending the Sixteenth Star Analyst Contest. Our results show that the disappearance of voting makes analysts face less pressure from funds, which leads to less optimistic bias and lower error in earnings forecasts. Moreover, the effect is more pronounced in the samples of analysts who work in small brokerages and have less star experience. Further, we find that analysts reduce listed firm joint site visits with small fund managers but still conduct single site visits, suggesting analysts are diligent but not catering to small fund managers anymore. In addition, we find the opposite result as the effect of the cancelation reverses. In general, our findings indicate that the voting right of the star analyst ranking has become a self-interest tool for fund managers, driving analysts to provide biased reports and soft services, becoming another source of pressure for analysts.

Analyst Earnings Forecast Optimism during the COVID-19 Pandemic: Evidence from China

Analysts are important participants in the capital market, but there are relatively few studies on the impact of the COVID-19 outbreak on analysts’ behaviors. This article examines the impact of the COVID-19 outbreak on the analysts’ earnings forecast optimism by using a sample of visits to Chinese listed firms during 2019–2020. We find that the analysts’ earnings forecasts become less optimistic and show pessimism after the outbreak of COVID-19. This result is consistent with past research findings that major natural disasters lead to analysts’ forecasts pessimism. However, we also find that the earnings forecasts issued by analysts with on-site visits are more optimistic after the COVID-19 outbreak. The increase in optimism is associated with accounting information transparency, the proportion of tangible assets, and the revenue geographical concentration of the visited companies. Further analysis shows that higher optimism in visiting analysts’ earnings forecasts after the COVID-19 outbreak leads to a positive market response, suggesting that optimism in visiting analysts’ forecasts misleads the market’s resource allocation. We also find that the higher level of optimism in visiting analysts’ earnings forecasts disappeared after the COVID-19 outbreak was well controlled. Overall, our study enriches the study of the impact of COVID-19 on capital markets from the perspective of analysts’ forecast optimism. Investors in other countries should also be aware of the impact of similar phenomena.

Analysis of Production Costs and Business Efficiency of Processed Agro-Industrial Products of Milkfish in Woha District, Bima Regency

The purpose of this study is to analyze the production and production costs of the efficiency of agroindustry business processed by MSME milkfish in Woha district, Bima regency, West Nusa Tenggara Province -Indonesia. The research method used was descriptive qualitative and quantitative with respondents of the milkfish processed MSME business as many as 10 business units selected using the purposive sampling method. The results of the research from data processing and data analysis showed that the business of processing milkfish into grilled fish food that is ready to be consumed has greater income when compared to farmers who cultivate milkfish who sell milkfish products directly without processing, besides that the average level of business efficiency is above one (>1), this means that from a business analyst perspective, the MSME business of processed milkfish agroindustry is economically profitable and feasible to work on means that the agro-industry of processing milkfish into grilled milkfish between the selling price of the product and the costs of the production process is said to be efficient. To further improve the milkfish processing agro-industry business, milkfish cultivation farmers should be able to process themselves into ready-to-eat processed foods in the form of grilled milkfish, presto milkfish and so on that can provide added value to production.

Research on the Information Spillover Effect of Production Network：From the Perspective of Analysts

As China’s capital market reform enters the deep-water zone, strengthening the role of security analysts is an excellent way to alleviate the contradiction between the sharply increased market specialization level and the backward literacy of investors. At the same time, unilateralism is on the rise, and the Chinese government has set the “domestic circulation” development strategy. In this dual context, this paper mainly discusses how the production network reflecting the domestic circulation affects the accuracy of analysts’ earnings forecasts.Based on the earnings forecast of listed companies released by security analysts during 2007-2018 and industry input-output data, this paper explores the impact of production networks on analysts’ earnings forecasts. It is found that the production network has an information spillover effect on analysts’ earnings forecasts. That is, when the industry of analyst-following companies is closely related in the production network, the deviation of the earnings forecast issued by analyst-following companies is lower. After measuring primary and secondary industries by tracking ratio, it is found that the spillover direction is from primary to secondary. The mitigating effect of production network correlation and its spillover effect on the information asymmetry at the industry and firm levels faced by analysts provide a specific explanation for the reduction of forecast bias. In addition, the cross-sectional analysis based on industrial policy shows that the marginal effect of production network correlation on analysts’ forecasts is more obvious in non-key supporting industries. Further analysis shows that the role of production network correlation analyst is effective, which promotes the integration of specific production network information into stock prices and reduces the synchronization between the firm and the market portfolio. After classifying the information hierarchy, it is found that analysts mainly increase the interpretation intensity of information at the industry level.The marginal contribution of this paper lies in that: It enriches the relevant literature on the quality of analysts’ earnings forecasts from the industry perspective, and highlights the importance of industry correlation that may have been neglected in the early stage. Different from the micro-perspectives of suppliers and customers, this paper extends the information spillover of industrial chain to the multi-dimensional production network, and enriches the research on industry association from the perspective of network. On the practical level, from the perspective of the inter-industry input-output that forms the domestic circulation, the emphasis on the role of production network and analysts is of certain practical significance for improving the efficiency of market information and promoting the professional reform.

Incumbent Firms’ Framing and Analysts’ Evaluations of the Adoption of Discontinuous Technologies

How can incumbents use framing to effectively alleviate securities analysts’ concerns about the adoption of a discontinuous technology? Combining framing theory with sociological perspectives of analysts’ evaluations, we theorize that, analysts’ favorability is a function of two characteristics of how a firm rhetorically frames its actions: conformity—the degree to which the framing accommodates analysts’ deeply held beliefs, assumptions, and norms—and commensurability—the degree to which the framing matches analysts’ existing knowledge and deliberations. We then apply Snow et al.’s classic framework to conceptualize discontinuous technology adoption framing as consisting of first, three distinct strategies of adoption frame articulation—bridging, extension, and transformation—and second, adoption frame amplification—defined as the clarification and invigoration of the respective frame articulation. Theorizing that the three articulation strategies systematically differ as to their conformity and commensurability, we argue that adoption frame extension is, ceteris paribus, the most effective articulation strategy, but nevertheless unlikely to fully resonate with analysts. We propose that incumbent adopters can resolve this dilemma and gain analysts’ support if they combine adoption frame transformation with high levels of adoption frame amplification. We substantively advance research on incumbent responses to discontinuous technologies, particularly the emerging framing perspective.

Can Sell-side Analysts Compete Using Public Information? Analysts as Frame-makers Revisited

This paper extends qualitative research on sell-side analysts by investigating how analysts compete against each other in the market for investment advice. The paper challenges the assumption that analysts must utilize private information in such competition, and investigates the role of a public setting – the quarterly earnings presentation – for analysts’ analytical work and client communication. The paper draws on an in-depth field study, comprising observations and interviews, and theorizes analysts as frame-makers when analyzing the materials. The study reveals how accounting reports place assumptions within the valuation practices of the share into question and risk ‘overflowing’ established calculative frames. The analysts utilized such uncertainty to enhance their dialogues with both clients and managers. Reacting to public information, therefore, served a central role for analysts’ competition, whereas proactively developing investment cases and acquiring private information were of less importance. These findings are discussed against recent developments of the sell-side industry’s remuneration models, and it is argued that experience has become an increasingly valuable quality. The paper also contributes to the perspective of analysts as frame-makers by shifting attention to overflows and how calculative frames develop through so-called ‘cold’ negotiations.

DIGNITY OF WOMEN THROUGH THE LENS OF QURAN: A COMMUNICATION ANALYSIS OF SURAH AN NOOR

In this research paper, researchers try to reflect upon the Qur’anic instructions for safeguarding dignity of chaste women while focusing on the concurrency of the teachings from a hermeneutic framework. Modern issues of mass communication are shaded with recent incidents of misinformation, disinformation and misinformation and we seek wisdom from Divine teachings to curb these aspects in the society. Fake news and false allegations on media platforms are common in contemporary times and efforts are ongoing from concerned authorities to eliminate this problem. In this regard the perspective of Quranic studies is necessary to explore that how divine verses are guiding the humanity for avoiding any harms especially to the women. This study is the account of our projective reading of Surah An-Noor that while dealing with the subject of safeguarding dignity of chaste women whispers about strategies of psychological resilience towards information disorder. This paper is our initiative to research the Divine instructions from the perspective of communication analysts and a believing Muslims.

Do Analysts’ Social Ties Affect the Textual Information in Their Reports? Evidence from China

ABSTRACT We develop insights into how analysts’ social ties affect their objectivity and the information content of reports, based on quantitative measures of social ties and textual information content. Using a sample ranges from January 2006 to December 2016 in China, we show that with wide social ties to fund managers, analysts’ ability to burnish their reputation with informative reports and to achieve career success with optimistic stock ratings is enhanced. Further evidence indicates that the trade-off between reputation and career success is dynamic. Specifically, after being elected as New Fortune stars, analysts attach more importance on textual information and are less subjective on stock ratings. These findings are robust across various robustness tests. Overall, our evidence highlights the role of social ties in the information-dissemination process in China A-share stock markets from the perspective of analysts and fund managers.