Analysis on the Relevance of Stock Price with Financial Information of Chinese Listed Companies
|School||Guangdong College of Commerce|
|Keywords||Feltham-Ohlson model Market Efficiency Financial performance indicators Correlation|
From the perspective of the development of accounting theory , the usefulness of financial information is not only the basis of financial accounting , capital market development . Therefore, the study of stock price and accounting information of listed companies is not only the needs of the development of accounting theory , but also the needs of the development of China's securities market . The only company to provide detailed and accurate financial information to the market , the market in order to respond to corporate disclosure information , correct evaluation of the price changes of enterprise value . Feltham-Ohlson model is one of the most widely used model of Western stock price and financial information , and the model through the comprehensive utilization of the company balance sheet , income statement , and statement of cash flows of information , from a whole new perspective to explain the financial correlation of the indicators of the company's share price , the research makes accounting empirical research shifted from simply concerned about the surplus information concerned about the balance sheet , income statement and cash flow statement is more comprehensive financial information , which provide a new direction for the accounting empirical research . Introduction of the theory and operability strong Feltham-Ohlson model based on empirical experience abroad and the characteristics of China's stock market to expand through the key indicators of the the verify that reflect the company's overall financial position , earnings per share and per share the net assets of the explanatory power of the stock price effects of the intrinsic link of China's securities market from 2000 to 2010 during the financial information and stock price change, combined with the rate of return on net assets , and operating margin to expand research study related financial indicators on stock prices impact our financial information to fully explore the usefulness of the investment decision-making , and the applicability of the Feltham-Ohlson model in China's securities market . The results of this study show that the influence of the financial information in China's capital market is weak, reflecting the immaturity of China's capital market , the lack of understanding of the information content of the financial data , but investors has been a growing emphasis on the usefulness of financial information . Research in Feltham-Ohlson model in China's capital market has some applicability to some extent , but this needs further argument applicability .