The Study On The Stock Price Reaction To The Accounting Information

With the development of the capital market, the relationship between the accounting information and stock price becomes more and more important not only in the practical investment field but also in the theory field. The paper chooses to study the stock price reaction to the accounting information in the annual report of the listed companies in China.The paper is based on the positive accounting theory. It adopts the positive measures to study the proposition. The information of the annual report of the listed companies in China is classified into two types, which are accounting information and non-accounting informationg. The paper defines the annual report, information, accounting information, and non-accounting information. The paper is based on these definitions. The paper subdivides the accounting information of the annual report of the listed companies into four types. The first type is the accounting information which can reflect the profit ability of the listed companies. The second type is the accounting information which can reflect the ability of the listed companies to pay in the future. The third type is the accounting information which can reflect operation ability of the listed companies. The forth type is the accounting information which can reflect growth ability of the listed companies. The paper analyzes the relationship between the four type accounting information and stock price , and comes to some conclutions, such as the relationship chart, the relationship forms, and so on. Through the analyses on the relationship between the four type accounting information and stock price, the paper verifies some hypotheses.The paper establishes the regression models to analyze the stock price reaction to the four type accounting information. Through the model analyses, the paper comes to some conclusions, such as the first type accounting information and the forth type accounting information are the basic factor to influence the stock price, and so on. The paper comes to the conclusion that the stock price concludes more and more accounting information. Of course, the paper finds some accounting information has directly affected the stock price, and some accounting information has indirectly affected the stock price, and some indirect influenced accounting information has affected the stock price through the direct influenced accounting information. According to the research on the relationship of stock price and accounting information, we can find a lot of investors prefer to the information, which can reflect the profit ability of the listed companies and the development ability of the listed companies in China. Accoring to the research, the paper finds some abnormal phenomena. When we use the model two to anticipate the stock price according to the accounting information of the annual report, we find the eigth listed companies are the most appropriate type. The paper comes to some conclusions according to analyzing these abnormal phenomena. The paper finds the capital market in China is not efficient. According to the research, 0-F model has been developed so that it can be fit to the research in China.All these conclusions form a construction about the stock price reaction to the accounting information. These conclusions will supply investors with some useful theoretical guide. The paper also studies how to use the regression models to the guide investment. The paper chooses two industries to analyze the model use and comes to some conclusions. These conclusions will supply the investors with theoretical guide.