A Study On Information Content Of Profit Pre-annunciation For Listed Companies In China

It is known to all that all of information disclosures on stock market must make for the investors judgments. Supervisors drew up drafts on profit pre-annunciations of listed companies in 1998 for the sake of investors. I probe into the effects of the drafts on profit pre-annunciations, using the sample of 339 companies, with the help of event research method.I come to conclusions: (1)changes on stock prices occurred before the profit pre-annunciations;(2)the impacts is noticeable during the release of profit pre-annunciations;(3)the impacts is different as for the different sorts of profit pre-annunciations;(4)on the day of releasing accounting reports, the impacts is not noticeable for the companies having released profit pre-annunciations; (5)Supervisors must discipline the companies who change their profit pre-annunciations without enough reasons ;(6)investors must attach importance to the profit pre-annunciations of listed companies; (7)the reforms on profit pre-annunciations had an immediate effect on stock price.In the end, based on the results that have been reached, I put forward some suggestions on supervision the profit pre-annunciations of our listed companies and I list some shortcomings of this paper.