Research On The Correlation Between The Quality Of Information Disclosure And The Information Content Of Stock Price

Through the signal mechanism of price, the basic function of stock market can realize the rational allocation of resources, and achieve the maximum return of investment. To ensure the mechanism play fully, price must contain the specific information related to the value of company. According to efficient market hypothesis, the price of the stock is fully reflected the information about company. But with the research on efficient market theory deeply, scholars gradually realize that the market is not completely efficient, and stock price can only reflect part of information about value of company, the other part is public information about market and industry and noise which has no relationship with the value of company. The information about value of company reflected in the price is the information content of stock price, which is the sign of market efficiency. The stock market in China is a new capital market. The stock price contains more value irrelevant information, which can not reflect the value of company and guide the market to allocate resource well. In recent years, the information content of stock attracts more and more attention of scholars, and the influence factors of it has become the focus of research. The listing Corporation transmits information to outside investors through information disclosure channels. And the investors and the public decide their investment decision according to their own understanding of the information. Their behavior of investment will affect the efficiency of resource allocation of market. So, is there any relationship between the information content of stock price and quality of Corporation information disclosure? Whether to improve the information content of stock price by improving the quality of information disclosure? These are what we will research in this paper.In this paper, summarizing and analyzing the research status about information content of stock price, and discussing the main methods of measuring the information content of stock price and the quality information disclosure in detail. Then, analsizing the relationship between information content of stock price and the quality information disclosure. This paper uses listing Corporation Shenzhen motherboard from2008to2009as research sample, the amount of future earnings in stock price as the information content of stock price, the credit rating disclosed by Shenzhen Stock Exchange as the quality of information disclosure, to analysis the effect of empirical information disclosure quality on the information content of stock price. Result shows that in Chinese security market, the stock price contains a large amount of information about future earnings, and the method of the content of information about future earnings in stock price is a good way to measure the information content of stock price. Also, with the improvement of corporate disclosure quality, the quantity of the information about future earnings contained in price is growing, which fully illustrates the improvement of corporate disclosure quality can significantly improve the information content of stock price.In the study of information content of stock price, most of Chinese scholars used the volatility of synchronization of stock price to measure the information content of stock price. However, this method is only suitable for the securities market which has little noise. Now, the Chinese securities market is still an emerging market, in which there is a lot of noise. If we use volatility of synchronicity of stock price to measure for China’s market s information content of stock price, we will get a great deviation. And the innovation of this paper lies in using the amount of information about future earnings in stock price to measure information content of stock price. The method can measure the information content of stock price directly, and avoid the interference effect of noise effectively.