Information Content Of Accounting Earnings: Comparison Between Earnings Per Share And Earnings Per Share After Deduction Of Non-routine Profit/loss

Since the China Securities Regulatory Commission (CSRC) issued"Contents and formats standard No.2 concerning information disclosure of companies offering shares to the public'contents and formats of annual report'(revised 2003)"that requires Listed companies to disclose'the net return after deduction of non-routine profit/loss'in 1999, much importance has been attached to the index of accounting earnings after deduction of non-routine profit/loss by Listed companies. Afterwards, in 2001 CSRC issued"Q&A No.1 concerning disclosure criterion for companies offering shares to the public—non-routine profit/loss(revised 2004)", which defined the concept of"non-routine profit/loss"in detail and illustrated the non-routine items. This dissertation tests the difference between the indexes of earnings per share and earnings per share after deduction of non-routine profit/loss which CSRC required listed companies to disclose according to their correlations with the price of share, and especially tests whether earnings per share after deduction of non-routine profit/loss have more information than earnings per share to facilitate to decision-making. Because the history of China's securities market is not long, the research of Chinese academia is not comprehensive, deep and systematic in this field. This paper empirically tests the information content of earnings per share and earnings per share after deduction of non-routine profit/loss, choosing listed companies of manufacture industry in A-share of Shanghai Security market. In the process of research, the article firstly expounds the significance of listed companies'disclosing the index of earnings per share after deduction of non-routine profit/loss, elicits the motive of the research and research significance and reviews the definition and calculation of accounting earnings, and defines the index of accounting earnings that studied by this dissertation. Secondly, it sets forth the theory basis of the relationship between accounting earnings and stock price in detail and puts forward research hypotheses. Thirdly, it reviews the relative researches on the information content of accounting earnings domestic and abroad. It defines the information content of accounting earnings, expounds the detailed content of the relative literature about accounting earnings, classifies, compares and evaluates all the opinions. Fourthly, it introduces the selection of sample, the...