| Evaluation places an important role in investment, especially in equity investment. Faced with uncertain information, the investors have to make quick and accurate decisions. Among all information, the most frequent used one is accounting information, so this dissertation about relationship between accounting information and evaluation value is vital as to investment..First part of this dissertation will illustrate how evaluation theories evolve through time and what is the intrinsic logical link among each other. According to research done by others, evaluation theories can be categorized in two kinds: direct-link (Ohlson,Feltham-Ohlson,EVA, etc)and indirect-link (DDM,DCF,FCFF,FCFE and RIM)Second part of this dissertation conducts an empirical study in capital-intensive industry, and it is divided into three parts: firstly, we test the validation of LID equation to see whether the model is applicable in China, secondly, calculation of variable is done and OLS is carried out to check the fitness of model, finally compare model with experience equations.The test show FO model is applicable in China, which establish the conection between future abnormal earning and today's accounting information. it's explaining power is strong and is improved year by year. Net operating assests have extra explaining power, which show the fitness for model's adaptation for China's earning management, but actually investors are more concerned about earning as whole.Chow test show model's stability when accounting standard change.Accounting information indeed has the linkage to corporate value, intrinsic value can be calculated by adjusted accounting information. According to conclusion given above, suggestion as follows has been made: increase proportion of the institutional investor in China's A share market to inhance the market efficiency. Attention should be paid to accounting information's quality, so as to reducing investor's searching costs by making the information more open and easy to read. |
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