Empirical Analysis Of The Accounting Earnings And Cash Flow Value Relevance

The empirical study paradigm on the relation between capital markets and financial statements has been a broad area of research that originated with the seminal publication of Ball and Brown(1968). Since the beginning of reform and opening up, China's accounting ideological and practical experience has changed, which is from planned economy to market economy, how does the effect of the China's reform according to the international market? What is the reality? To answer these questions, an important criterion for evaluating the accounting information in decision-making is decision-making usefulness or value relevance, which must be concerned. Resulting in the related issue is worth considering too. For example, whether the investors in the process of deciding would like to use the accounting information? If they do, whether different the accounting information plays the same role or some of them plays a key role? For these problems, Western scholars' research has yielded some results. But because their research is based on relatively sound capital market, during the meanwhile China's stock market has its own features, their conclusion can not be bound to our country. The features should affect the investors, while they are making decision by the accounting information, even the value relevance of accounting information.Therefore, the method of this article unifies the theoretical and the empirical analysis. Taking listed companies of Shenzhen Market as the sample scope, the thesis makes every effort to find evidence of relevance between the accounting earnings, the cash flows and the stock price through a series of real diagnosis analysis between the earnings, the cash current capacity and the share price. The thesis conforms of four parts, various part of primary contents are as follows:The introduction part introduced the accounting information value relevance research background and the research significance first, then reviewed the domestic and foreign related literature. Among them, the overseas literature was rich, which has contained to this domain in many detail examination, like sign test, average value examination, variance examination, earnings information timeliness research, earnings response coefficients research, accounting earnings and cash flows value relevance comparison research and so on; Comparatively the domestic scholar appears the insufficiency in this domain research, also has not obtained the consistent conclusion. Then, the author summarized the reason why did not the research obtain...