Research on the Influence of Enterprise Financialization on the Accuracy of Analysts’ Forecast : Mediating Effect based on Fixed Asset Intensity

Yi Xue

doi:10.54691/bcpbm.v19i.733

Authors

Yi Xue

DOI:

https://doi.org/10.54691/bcpbm.v19i.733

Keywords:

Financialization of Enterprises, Forecast Accuracy, Intensity of Fixed Assets, Mediating Effect, Financing Constraints

Abstract

This paper built a fixed effect model to study the influence of financialization of enterprises on the accuracy of analysts' forecasts and the mediating effect of fixed asset intensity based on the data of Chinese A-share listed companies from 2016 to 2020. The results showed that the rise in degree of financialization improved the accuracy of analysts' forecasts by reducing the intensity of fixed assets. Taking a further consideration into the influence of the property rights of enterprises, it found that in the state-owned enterprises with rich financial resources, the degree of financialization had little influence on the accuracy of analysts' forecasts. However, in non-state-owned enterprises with large financing constraints, the degree of financialization had a more significant effect on the accuracy of analysts' forecasts. In general, this paper expanded the research situation of enterprises’ financialization on the accuracy of analysts’ forecast and provided a certain empirical support basis for the transformation of enterprises to financial investment, which had a certain reference significance for promoting the long-term development of China's economy.

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