Research On The Value Relevance Of Accounting Earnings And Cash Flow About Listed Companies In Chinese GEM

Accounting earnings is a kind of information based on accrual basis,while cash flow is based on cash basis.The research on the correlation between the two kinds of information and the stock price has always been the focus of the theoretical and practical study,and does not reach an unanimous conclusion.October 30,2009,the listing of Chinese GEM make some issues,such as,the GEM market regulation,management of listed companies and how to make more rational investment decision-making for investors,are urgently to be resolved and improved.In this context,based on the theoretical research of summarsion of the related literatures,the efficient markets hypothesis and decision-usefulness view,this article empirically studied the correlation between the two kinds of information and the stock price of listed companies in Chinese GEM.In this paper,I introduce the simplified and revised F-O model,select the qualified and listed companies in Chinese GEM from 2010 to 2015 as the research sample,select EPS and ROE as the accounting earnings indicators,select CFO,CFI and CFF as the cash flow indicators,try to make an empirical study of the value relevance of accounting earnings and cash flow indicators with the stock price about listed companies in Chinese GEM.The empirical results prove that the accounting earnings and cash flow of listed companies in Chinese GEM have a certain degree of interpretation on the stock price,but the value relevance of the accounting earnings is significantly stronger than cash flow,and there is incremental value relevance between accounting earnings and cash flow.For the conclusion of the study,from the perspective of the market supervision of the GEM,this paper puts forward some suggestions on how to improve the market laws and regulations,increase the supply of listed companies on the GEM,standardize and strictly implement the information disclosure system and implement a reasonable delisting system;From the perspective of listed companies,this paper puts forward some suggestions of focus on the company's own high-growth,enhancement on the ability of technological innovation and strictly abide by the market information disclosure system;From the perspective of investors,this paper puts forward some suggestions on comprehensive consideration of the enterprise's accounting earnings and cash flow information to make decisions,and vigorously foster the recommendations of institutional investors.In the future,scholars can study from different perspectives in order to fully demonstrate the correlation between accounting earnings,cash flow and stock price of listed companies on the GEM,and thus provide a reasonable reference for investors' decision-making.