| With the development of the securities market and the formation of empirical accounting theory, more and more scholars study the role of accounting information in the stock market by empirical methods. The papers mainly study about the correlation between accounting earnings, net assets, cash flows and stock price.In this paper, we reviewed and summarized the related articles, and discussed the theoretical basis. We chose China’s a-share listed companies as the research objects, and picked up net assets from the balance sheet, net profit from the income statement, operating cash flow and free cash flow from the cash flow statement, as representative indicators. On the basis of the F-O model and its extension model, we analyzed the forecasting ability of the four indicators to the stock price and their stability by using the Pearson correlation coefficient and multivariate linear regression model.We chose financial data of listed companies from CSMAR, and process data through SPSS, then came to the following conclusions: the correlations between earnings per share(EPS), book value per share(BVPS), operating cash flow per share(OCFPS), free cash flow per share(FCFPS) and the stock price are positive, EPS has the strongest correlation with the stock price, and the impact of OCFPS on the stock price increases year by year; EPS and BVPS have mutually incremental value, and the former is more than the latter; After publishing EPS and BVPS, the disclosure of OCFPS helps to enhance the interpretation to the stock price, FCFPS shows no incremental explanatory value to the stock price; EPS, BVPS and OCFPS show sustainable stability, and EPS has the highest stability, and FCFPS has the lowest stability.Through this paper, we have determined the relative financial indicators to stock price, and tested their stability, which are more effective to guide investors to analyze the performance of listed companies and making economic decision. |
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