Impact Of Product Information Disclosure On Firm Financial Market Value In The Food Industry

The development of socialist market economy in Chine is still in the early stages, the majority of enterprises in the food industry is also in a growth period of development, the business strategy is more focused on economic benefit, and ignore their own moral and integrity.Because of information asymmetries in market transactions, consumer in a disadvantage position so that can not make reasonable and effective choice.The cases of Endanger the health and safety of consumers repeatedly occur in recent years, food safety issues has aroused widespread concern. In this situation, China’s Ministry of Health announced the " Labelling of Prepackaged Foods General " and the" Nutrition labels of prepackaged food General" on April20and October12in2011, unified and improved the standard of information disclosure of food products. The increase of product information disclosure standards will definitely have a complex influence on industry and corporate business development.This research carried out in the corporate point of view, analyze the impact of information disclosure standards increase on the price of corporate stock. Moldeling about the relationship between the announce of product information disclosure regulations and short-term stock price volatility,and research use the data of Food listed companies in China. Using the event study methodology, the empirical test analyze direction and time interval of stock price fluctuations,and select the abnormal return as main variable. The empirical analysis results confirm that after the release of information disclosure regulations, the stock price occur fluctuations indeed,and the direction is positive, that is, the stock price will rise.Based on the results that the short-term stock price increase, establishing a model about the factors of stock price volatility, useing for finding the difference among the enterprises in food industry. First of all,the result of this part of empirical test show that the higher income the corperate can make,the larger rise of its share price. In addition, we consider the business management strategy such as marketing,charity donation and R&D investment as a consideration. The research results did not confirm the advertising expenditures for marketing have a significant effect on stock price fluctuations, but the charity donation and R&D investment have a positive impact on the rise of stock price caused by product information disclosure.