A Study On Information Content Of Profit Pre-Announcement For Listed Companies In China

The establishment and development of pre-annunciations can make investors know the value of stocks and reduce the information asymmetry.Theoretically speaking,the design of such a system is helpful to improve the securities market information transparency.So,how is the quality of the performance pre-announcement information? Is the performance pre-announcement information decision-making useful for investors? Many researchers both at home and abroad have done a lot of research and they get useful results.The purpose of the paper is studying of the content of pre-announcement information.According to the research,we collect in Shanghai and Shenzhen Stock Exchange listed companies as the effective samples,effective samples in 2013 and 2014 performance pre-announcement information as the research object.This paper uses event study method to research the stocks' CAR on the disclosure date after 10 trading days,in order to judge the degree of market reaction on the performance preannouncement information.The study found that China listed companies' performance pre-announcement information is given priority to with good news and bad news.Based on the event study method,the paper also uses regression analysis to analyze the research problem.Through empirical study,the paper gets some conclusion.First of all,China listed companies' performance pre-announcement information is well.Good news has positive and long-lasting effect on market reaction.Bad news has negative and short effect on market reaction.Secondly,the performance changes is full of information,especially the percentage form.The innovative points of this paper are mainly in the following two aspects: First,most research studies the problem based on the event study method combined with T test.This paper not only uses this method,but also regression analysis,which improves the accuracy.Second,when the paper established the regression model,we chose the performance change,ROE,DAR,the size of company and cash ratio as control variable.Through regression analysis,the paper wants to analyze the difference between different types of pre-announcement.