The Research Of The Related Quality Between Financial Statement Analysis And Security Investment

With the development of market economics and establishment of capital market, security investment comes out. And it is the establishment and development of capital market that contacts financial statement analysis with security investment. However, the air of speculation is thick in the current security market in china, that is, it is weaker for a large number of investors to recognize the importance of financial statement analysis in security investment. It is not only because the Chinese security market is not ripe and perfect, but also because the investors too emphasize on utilizing the methods of technical analysis in security investment. Although the methods of technical analysis have advantage on deciding the time of buying and selling share and short-period investment, their disadvantage and limitation can not be ignored in primary security market in china which has been set up for ten years or so. Therefore, using basic analytic methods, especially the methods of financial statement analysis, to guide decision of security investment, a lot of investors, especially individual investors, not only efficiently escape being controlled by banker and managing personal asset efficiently, but also can promote the healthy development of capital market and stability of society in order to improve welfare of the whole society.On the basis of the above, the paper focuses on contributing factors and counter measures for the weak related quality between financial statement analysis and security investment. And it is chiefly divided into the following five chapters:Chapter 1: Introduction. The chapter focuses on discussing significance and function of research on the related quality between financial statement analysis and security investment in order to illustrate the necessity of studying the related quality.Chapter 2: Financial statement analysis. The chapter emphasizes on discussing the meaning, classification, aim and function, core of financial statement analysis, On the basis of these, a set of financial ratios which evaluate financial statement systematically, comprehensively and scientifically are constructed.Chapter 3: Security investment analysis. The chapter focuses on twobasic analytic tools in security investment analysis: basic analysis means and technical analysis means. It describes their theory grounds, character, scope and content. It finally describes the current state of security investment analysis in our country in order to illustrate the importance of the basic analysis for financial statement of the company. Chapter 4: The experimental research on the related quality between financial statement analysis and security investment. By analyzing several years of financial statement of Hubei Lantian and Liaoning Yuye, the chapter synthetically utilizes the above theory and analytic methods to announce the weak related quality between financial statement and security investment in the present security market in china. On the other hand, by ways of the experimental research on the two shares, the attempt of the feasibility of finding and distinguishing false and beautified statement is done through using financial statement analysis.Chapter 5: conclusion, suggestion, counter measures. On the basis of the above analysis, the chapter gives two conclusions and four pieces of suggestion and counter measures. Two conclusions are as follows: Financial statement analysis is a very important analytic tool; there is the weak related quality between financial statement analysis and security investment and the causes are explained. Four pieces of suggestion and counter measures are as follows: The investors, especially middle-small investors, should build up ideas of rational investment; completing all kinds of laws, regulations and market mechanism of security market, strengthening the control over the security market; Making the administration structure of the company reasonable and efficient; Standardizing and governing medium organization in order to strengthen their independence.