An examination of factors affecting Chinese financial analysts’ information comprehension, analyzing ability, and job quality

An examination of factors affecting Chinese financial analysts’ information comprehension,... This paper examines various factors affecting Chinese financial analysts’ information comprehension, analyzing ability and job quality. We hypothesized that financial analysts with better educational background, more experience, superior resources provided by large brokerage firms and more information sources have better information comprehension, stronger analyzing ability, and higher job quality. Using a survey method to collect data, we found that information sources have a significant impact on analysts’ information comprehension, analyzing ability and job quality. Specifically, analysts tend to exhibit greater information comprehension and better job quality when they conduct more company-level surveys. Additionally, when they have more access to firms’ indirect information, analysts tend to have a stronger analyzing ability and better job quality. We also found that analysts’ educational background has a positive impact on their analyzing ability while analysts’ work experience improves their job quality. This study’s results indicate that financial analysts are still a fledgling profession in current China, and the capabilities of Chinese financial analysts need to be improved through additional training and continued education. Moreover, our study is important in highlighting the urgency of fostering the development of the financial analysis profession in China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Quantitative Finance and Accounting Springer Journals

An examination of factors affecting Chinese financial analysts’ information comprehension, analyzing ability, and job quality

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Publisher
Springer US
Copyright
Copyright © 2007 by Springer Science+Business Media, LLC
Subject
Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
ISSN
0924-865X
eISSN
1573-7179
D.O.I.
10.1007/s11156-007-0058-3
Publisher site
See Article on Publisher Site

Abstract

This paper examines various factors affecting Chinese financial analysts’ information comprehension, analyzing ability and job quality. We hypothesized that financial analysts with better educational background, more experience, superior resources provided by large brokerage firms and more information sources have better information comprehension, stronger analyzing ability, and higher job quality. Using a survey method to collect data, we found that information sources have a significant impact on analysts’ information comprehension, analyzing ability and job quality. Specifically, analysts tend to exhibit greater information comprehension and better job quality when they conduct more company-level surveys. Additionally, when they have more access to firms’ indirect information, analysts tend to have a stronger analyzing ability and better job quality. We also found that analysts’ educational background has a positive impact on their analyzing ability while analysts’ work experience improves their job quality. This study’s results indicate that financial analysts are still a fledgling profession in current China, and the capabilities of Chinese financial analysts need to be improved through additional training and continued education. Moreover, our study is important in highlighting the urgency of fostering the development of the financial analysis profession in China.

Journal

Review of Quantitative Finance and AccountingSpringer Journals

Published: Oct 2, 2007

References

  • Analysts coverage and intangible assets
    Barth; Mary, E; Kasznik, R; McNichols, MF
  • Analyst forecast accuracy: do ability, resources, and portfolio complexity matter?
    Clement, MB
  • Management communication with security analysts
    Francis, J; Hanna, JD; Philbrick, DR
  • Stock performance and intermediation changes surrounding sustained increases in disclosure
    Healy, P; Hutton, A; Palepu, K
  • The effect of regulation fair disclosure on the relevance of conference calls to financial analysts
    Irani, A
  • Expertise in forecasting performance of security analysts
    Jacob, J; Lys, TZ; Neale, MA
  • The effect of experience on security analyst underreaction
    Mikhail, MB; Walther, BR; Willis, RH
  • Reputation and performance among security analysts
    Stickel, S
  • Herding among security analysts
    Welch, I

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