The Empirical Research About Correlation Between Stock Price And Financial Information On Chinese A-share

Foreign academia began to study the relationship between financial information and the stock prices in the stock market in early times.The result was that financial information of company affected stock prices,which meant that financial information is efficient.As there are only more than twenty years in China stock market,securities market system is not perfect.As securities market becomes more and more important in our country,it is more significant to research the relationship between financial information and the stock prices in the stock market.It not only provides investors with investment advice,but also perfect our securities market to promote the economic development of our country.Firstly this paper introduces related research and theories about the relationship between financial information and the stock prices in the stock market in China and abroad.This paper introduces financial information and non-financial information that affected stock prices.It choose residual income valuation model that is verified by scholars in China and abroad to regress analysis.It takes empirical test of the relationship between financial information and the stock price in the stock market with GLS.Then it takes robustness test to regress analysis with taking samples as large capitalization stocks and medium small capitalization stocks.And it takes samples classified as the secondary and tertiary industries.The result of the study concludes that financial information has affected the stock price in China.The result shows that the investor mostly focus on the financial indicators about profitability and cash ability,almost ignore the financial indicators about debt paying ability,operation ability,development ability.The result of robustness test indicates that compared with small and medium-sized companies,financial information disclosure system of large company is more perfect.Investors focus on the financial indicators of the assets of listed companies of the secondary industry.The stock market in our county is a weak efficient market and less value investment market.According to the result of empirical study,this paper analyzes the related reasons.It provides the advice that cracking down on financial fraud,optimize the structure of investors,drop the noise of the financial information,supervision and combating the manipulation of securities prices,strengthen policy credibility and stability.