Information Disclosure Quality Rating and the Value Relevance of Financial Statements Data
|School||Dongbei University of Finance|
|Keywords||listed company information disclosure value relevance financial statements data|
Since the shanghai stock exchange was established in 1990, the development of the stock market attracted worldwide attention during 20 years. By the year 2011, the number of all the listed companies of the two exchanges is 2063 which increases by 20% than the previous year, with the stock turnover of up to 54.56 trillion yuan. The vigorous development of the stock market makes investors need the more correlative, timely information, the decision making related information. The higher information disclosure quality brings the lower information asymmetry. It’s more useful in decision making and promoting the development of the stock market.This thesis begins with the economic theory. Firstly, this thesis analyzes the agency theory with the information disclosure. The disclosure of the information helps to ease the agency problem, enhance the level of the corporate governance and increased the company’s value. Secondly, this thesis analyzes The Efficient Market Hypothesis with the information disclosure. No matter the market is strong effective, half strong effective or weak effective, it needs information. Especially in ours’ weak effective market, the information disclosure helps to enhance the effective of the stock market. Finally, this thesis analyzes the signal-transferring theory with the information disclosure. The companies with a good performance transmit the good information in order to distinguish themselves from the companies with the bad performance and decrease the information asymmetry to raise the value. Later, this thesis analyzes the related theory of value relevance: Valuation Perspective and Information Perspective. Then this thesis uses the price model for empirical research analysis.This thesis uses the price model to verify the influence on the value relevance of the financial data, Incremental value relevance and the value relevance of the rating change. The study indicates that the financial data’s value relevance with a better grade is higher. The high information disclosure quality increases the value relevance of EPS, but decrease the value relevance of BVPS. The rating change influence the value relevance of the financial data.At the end of the thesis is the recommendation. (1) The information disclosure quality rating of Shenzhen exchange is efficient, and should be extended to the shanghai exchange. (2) The information disclosure quality rating of Shenzhen should put on more attention on the substance, not only on the procedures. (3) The information disclosure quality rating should be more transparent, detailing. (4) We should enhance the efficient of the stock market. In sum, whether to reduce the information asymmetry in promoting the development of the stock market, or better to supervise the information disclosure of listed company, we should complete the information disclosure system and enhance the level of the information disclosure.This thesis includes six chapters. The first chapter is introduction, which introduce the research background and meaning, contents, research approach and innovative points. The second chapter is literature review from the measure and the value relevance of information disclosure quality. The third chapter is economic theory and four research hypothesis. The forth chapter is research design, including the model and data sources. The fifth chapter is descriptive statistics and conclusion according to the research. The sixth chapter analyzes the conclusion and put forward the suggestion and the limitations.