Do Analyst Attention Help Improve the Growth of Enterprises: Perspective of Financial Constraint

Based on the data of Chinese listed companies obtained by CSMAR, this paper examines the impact of analyst concerns on the growth rate of enterprises' main businesses. The OLS estimation results show that both analysts' attention and research reports' attention have a significant positive impact on the growth rate of the main business of the enterprise. Heterogeneity analysis shows that analysts' concerns have a greater impact on SMEs with total assets below the 50th percentile that year. Mechanism analysis shows that the positive impact of analysts on enterprises is achieved by easing financing constraints. Therefore, this paper believes that analysts' attention is the key factor to promote the growth of SMEs, and investors can also pay more attention to these enterprises. For small and medium-sized enterprises, financing constraints are a very difficult problem. This paper provides a new perspective and empirical evidence to ease the financing constraints of enterprises, especially SMEs.