Empirical Research On Correlations Between Accounting Information And Stock Prices Of Listed Companies

Securities market is a information-intensive market.The stock price is very sensitive to the change of information. However,Accounting information is the direct factor affecting stock prices and is the main basis for investment decision. In recent years, the information disclosure of listed company and market regulation continue to be strengthened and improved.So the correlation between accounting information and stock prices should be further improved.But how much power does the accounting information influence the stock price? Which type of accounting indexes can provide the most important information to investors?Is the efficiency of the stock price gradually improving?These questions urgently need to be answered in our country's capital market. Therefore, the analysis and verification of correlation between accounting information and stock price has the vital significance for China's securities market and investor.This paper firstly analyzes and expresses the basic theory of correlation between accounting information and stock price. Secondly,this paper introduces the DEA methodology , establishes multiple regression model and pricing efficiency index model. Then, this paper selects 2007 -2009 year financial statements of listed companies as the sample of the empirical analysis.The correlation analysis shows that the accounting indexes of enterprise profit ability have the strongest correlation with the stock price and they are most concerned by investors for making their decisions. Regression analysis showes that the joint interpretation on stock prices by the enterprise accounting information has no obvious changes ,but is low degree. DEA analysis results show that the efficiency of stock price is low, but gradually increases.That is in line with China's stock market situation.Then,this paper expiains the reason for weak correlation between accounting information and stock price from three aspects included information disclosure, investor behavior, government policy guidance.Finally,this paper puts forward some suggestions of improving the correlation between accounting information and stock price.