Study On Market Effects Of The Accounting Information Transparency

This paper studies on the accounting information transparency market effect of listedcompanies in China. This paper uses the research methods of domestic and foreign scholarsfor reference to analyze from the principal-agent theory, signaling theory, informationasymmetry theory. Considering the actual situation of capital market in our country, thispaper carried on the empirical test on the market effect of the listed company accountinginformation transparency. These research methods can inquiry into the current situation andgreat significance of the accounting information transparency of listed companies in ourcountry. It can provide relevant theory and empirical basis for the construction ofaccounting information disclosure system of listed companies in China as well as theconstruction and improvement of the securities market in our country.This paper is divided into six parts, the first part is the foreword, mainly introduces thebackground and significance of the selected topic, the research method and researchapproach, and the innovation of this paper. The second part is the literature review onaccounting information transparency. This part will sort out the research on the basis ofsummarizing the review of research. The third part and the fourth part is the main part ofthis paper. The third part analyzes the current status of the accounting informationtransparency, through the measure of the transparency of accounting information and thecompare of2006-2011China’s development situation and trend of the accountinginformation transparency, it can be seen that the present accounting informationtransparency also need to improve. In the fourth part, first theoretically explain theconnotation of the accounting information transparency, and present my definition of theaccounting information transparency. I think the accounting information transparencyshould be the extent the investors know the enterprise through the accounting information.It should meet three conditions:(1) as the information transfer party should be accord withthe standard of high quality information.(2) as the transmission channel, it should includethe open channel and the private channel, public channel requires mandatory disclosure andvoluntary disclosure of information. Private channels include transferring information byfinancial analysts, institutional investors and company internal personnel information.(3)as the main recipients of outside investors, transparent information should be needed anduniversally recognized. By this discuss the essential theoretical foundation of theaccounting information transparency. Then this part will discuss the essential theoreticalfoundation of the accounting information transparency. By using the principal-agent theory, signaling theory, asymmetric information theory to analyze. In order to further empiricaltest, this part will select the suitable measurement of accounting information transparencyfor the research, which is the Shenzhen stock exchange information disclosure evaluationresults. Finally, from the stock price volatility, stock liquidity, and information purity ofstock price to analyze the market effects of accounting information transparency, and theconcept of these aspects and research significance. The fifth part is the empirical analysispart, through the research model, sample data, variables, selection of indicators, to designsuitable model for the analysis the market effect of the accounting information transparency.The empirical test method on information purity of stock price, and the volatility of thestock price is through the T-test, nonparametric test, through a variety of grouping. Thismethod is to study the significance of the impact of the accounting informationtransparency. In the effect of accounting information transparency on the market liquidity,via multiple regression methods, study the accounting information transparency of marketeffect. The sixth part of the paper describes the research conclusion and the limitation of theresearch, by the process and the conclusion, propose recommendations of the constructionof accounting information disclosure system and the securities market.