| This paper discusses accounting numbers and disclosure quality of accounting information by methods of theoretic analysis and empirical testing. Then, theoretic support and policy suggestions were provided for the supervision of stock market and investors of Chinese listed companies.There are three parts in this paper. Corresponding contents and conclusions are as follows:First part of this paper includes chapter 2 and 3. Based on the review on foundation theory of EMH and CAPM, chapter 2 discusses relationship between these theories and accounting information value relevance. In chapter 3, information perspective and price perspective are introduced, respectively.And Second part of this paper includes chapter 4, 5, and 6.This part is the core of this paper.In chapter 4, our study examines the relative and incremental value relevance of earnings and operating from cash. Results imply that earning numbers and operating cash flow both have value relevance and cash flow hasn't incremental information. Chapter 5 employs price model based on the same sample to examine the same 3 hypothesis mentioned in chapter 4. T test and Wald test results show that price model is better than return model to study on value relevance in china's emerging market. Results reveals cash flow value relevance has been improved and has higher incremental information content on earning since 2002 by annual test.Based on the results above, chapter 6 investigates quality of accounting information represents by information disclosure quality. By using price model, T test, Wald test methods, the results shows that company's accounting information get more value relevance when its information disclosure ranked higher.Third part of this paper includes chapter 7 and 8. We propose policy proposals for consummating accounting institutions, supervision of stock market of our country. At the end of this paper, limitation of the study and further research direction has been given out. |
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