The Effect Of Stock Incentive To The Stock Price Informativeness

In the high-speed economic development and enhanced global economic linkage,China's stock market as an emerging one has a prevalent phenomenon of a long-run comoving trend of stock prices and chase after go up kill drop,that the inefficient allocation of capital gives a stark contrast to the rapid economic growth and the quick development of stock market.For exerting the signalling function of stock prices effectively to directing reasonable capital collocation,and improving the market efficiency,it requires to examine the magnitude of firm-specific information which means stock price informativeness that stock prices carries and transmits.Seeing from the microlevel,stock incentive is as a general use of listed companies incentives,and one of the factors influencing the stock price informativeness.And the stock price informativeness is the accounting information,which is reflected through the transaction,the level of accounting information corresponding to the level of stock price informativeness will be different.Based on the principal agent and Information Asymmetry,under the the compensation contract and stock incentive,the managers may choose "interest convergence" or "predatory effect",company can adjust or distort earning information by using earnings management in different ways to transmit the messages about the economic income which influences investors' decisions,thus affecting the information content of stock prices which informed by the investors' trading action.Therefore,this paper not only gives a deep analysis and research on stock price informativeness effects of stock incentive,but also gives a deep analysis and research on the accounting information quality in the "stock incentive-stock price informativeness " path to play the role of the intermediary conduction effect.Firstly,this paper summarizes the research situation at home and abroad of accounting information quality,stock incentive and stock price informativeness,and analyzes and profound research on their internal relationships based on the principalagent theory,information asymmetry theory and signal transfer theory.So as to analyze the role of accounting information quality in the "stock incentive-stock price informativeness" path to play the role of the mediating effect.Taking the samples of 1802 listed companies of Shanghai and Shenzhen A-share markets from 2010 to 2015 and using Fama-French three-factor model to account the stock systematic risk as measuring stock price informativeness,and taking accruals earnings management as measuring accounting information quality for reference,to make the empirical tests as(2)the relationship between the accounting information quality and the stock incentive and the stock price informativeness respectively,(3)the mediating effect of the accounting information quality.The study found that stock incentive does have a positive impact on the stock price informativeness,but the accounting information quality as a mediating effect,will weaken the stock incentive on the stock price informativeness positive role.Moreover,Under the different macro economic environment and institutional adjustment mechanism,the degree of the mediating effect of accounting information quality is different.The main contribution of this paper is exploring the accounting information quality in the "stock incentive-stock price informativeness" path to play the role of the mediating conduction effect.And exploring the degrees of mediating effect of accounting information quality under different macro economic environment,institutional adjustment,enriching the framework of stock incentive,accounting information quality and stock price informativeness.This study provides empirical evidence and theoretical supports for the strengthening of accounting regulation and promoting allocation.