Stock index adjustments, analyst coverage and institutional holdings: Evidence from China

Using 231 pairs of matched firms from 2009 to 2012 in Chinese stock market,we find that the stock index adjustment significantly affects the analyst coverage, which in addition to the stock index leads to more analyst coverage, while deletion from the stock index has no significant effect, indicating that stock index adjustment can significantly change the information environments of firms that are added to the index. An index adjustment also affects institutional holdings in consideration of new information(e.g., changes in fundamentals and information environments). Changes in institutional holdings are partially due to changes in analyst coverage, and both index funds and other types can change their portfolios in response to changes in the target firms' informativeness.

Stock index adjustments and analysts' forecast optimism:A quasi-natural experiment on the CSI 300 Index

As stock index adjustments comprise a basic system of capital market,their potential influence on analysts’earnings forecasts is worthy of research.Based on a research sample of 23 adjustments to the CSI 300 Index from June 2007 to June 2018 and the backup stocks announced during the same period,this study examines the impact of additions to stock index on analysts’forecast optimism using a staggered difference-in-differences model.The research results show that after stocks are added to the stock index,analysts’earnings forecast optimism about these stocks increases significantly.Cross-sectional analysis indicates that this increase is more significant when the market is bullish,institutional ownership is low,the ratio of listed brokerage firms is low,star analyst coverage is low,firms show seasoned equity offering activity,the ratio of analysts from the top five brokerage firms ranked by commission income is high,and the analysts’brokerage firms are shareholders.However,analystlevel tests find that analysts’ability helps to reduce the impact of additions to stock index on earnings forecast optimism.Furthermore,additions to stock index significantly increase analyst coverage and forecast divergence.Economic consequences tests find additions to stock index significantly increases stock price synchronization,which is partly mediated by analysts’earnings forecast optimism.This study enriches the literature on the impact of basic capital market systems and analyst behavior.The findings suggest that investors should rationally evaluate analysts’earnings forecasts for stocks added to the stock index and obtain further information from various channels to improve asset allocation efficiency.

Determination of correlation of Adjusted Blood Requirement Index with outcome in patients presenting with acute variceal bleeding

AIM： To determine the correlation of Adjusted Blood Requirement Index （ABRI） with the 7th day outcome in patients presenting with acute variceal bleeding.METHODS： All patients presenting with acute variceal hemorrhage （AVH） were included. Patients with previous band ligation, sclerotherapy, gastrointestinal or hepatic malignancies were excluded. Patients were managed as per standard protocol for AVH with terlipressin and band ligation. ABRI scores were calculated using the formula outcome of alive or expired up to the 7th day after treatment. The correlation between ABRI and mortality was estimated and a receiver operative characteristic （ROC） curve was plotted.RESULTS： A total of 113 patients （76 male; 37 female） were included. On assessment, 18 were in Child＇s Pugh Class A, 82 in Class B and 13 were in Class C. The median number of blood units transfused ± inter-quartile range was 3.0 ± 2.0. The median ± inter-quartile range for ABRI was 1.3 ± 1.1. The ROC curve of ABRI for expiry showed a significantly large area of 0.848 （P 〈 0.0001; 95% CI： 0.75-0.95）. A significant correlation of log transformation of ABRI with an outcome of mortality was present （P 〈 0.0001）.