Positive Research On Earnings Grouth Rate And Stock Return Based On Shen Zhen Medium And Small Stock Market

Since Ball and Brown put forward positive research paradigm in 1968, the usefulness of accounting information for making decision has become the focus of positive accounting research. After the Reform and Open, accounting theory and practice experienced the transformation from planning economy to market economy. How about is the joint of reform and international market? What is the practical result of accounting reform? One of the important testing standards is whether accounting information is useful for making decision. And the related problems are worthy of consideration. Such as, do investors use accounting information when making decision? What kinds of accounting information do investors attach importance to? As to those problems, western researchers have reached some production based on the more perfect capital market. Chinese stock market, especially the medium and small enterprise stock market has its own characteristics which must affect the way of investors using accounting information, at last influencing the value-relativity of accounting information.So the paper chooses the listed companies in medium and small stock market as the sample, and finds the evidences that there are relationship between accounting earnings growth rate and stock return. The paper is composed of four parts:Firstly the narration part introduces the research background and significance of accounting information value-relativity, and then reviews related literatures home and abroad. The second chapter at first discusses working mechanism of accounting information. Then finds the evidences that accounting information is value-relative in the perspective of market and three-degree relation; at last five stock value calculation models are analyzed, which concludes that accounting information should have value-relativity. Meanwhile the selection and the running philosophy of panel data models are analyzed. The third chapter is positive analysis, using grouping analysis, relativity analysis, regression analysis to analyze the relationship between accounting earnings growth rate and stock return: the accounting information that the listed companies in the Shenzhen medium and small stock market promulgates is able to deliver decision-relative information; cash flow is able to deliver important information for investors, which is different from main stock market, however compared with accounting earnings, cash flow has less information content; cash flow and accounting information can supply increment information for each other; main operating profit growth rate has information content; current and expected accounting earnings growth rate, and last cash flow growth rate plays the main role in stock return rate; it will enhance explanation extent largely for stock return rate to consider current and next accounting earnings growth rate, and last cash flow growth rate comprehensively. The fourth chapter is induction and deduction based on theoretical contents and the conclusion of positive contents. The part gives policies and suggestion on the way of improving value-relativity of accounting information in perspective of investors, security agency and market supervision. In the end, the paper draws a conclusion.