Abstract: The fixed effects model was used to analyze empirically the panel data of Shanghai and Shenzhen stock markets in 2005~2013， and the effect of investor sentiment on earning forecast of security analyst was investigated. The results showed that in the high investor sentiment period， earning forecast is relatively optimistic， the accuracy is higher and the divergence degree is bigger also，which are opposite in the low investor sentiment period. The prediction of security analyst-rational represent is affected not only by enterprise factors in micro-level， but also by the investor sentiment in macro-level. It demonstrates that the profit forecast behavior from the view of behavioral finance.

Key words: investor sentiment, security analyst, earning forecast, behavior bias, panel data