The Research On The Efficiency Of Earning Information In Quarterly Finance Reports Of Chinese Listed Companies

Since the listed company of china stared to disclose quarterly finance reports in 2002, quarterly finance reports play an important role in stock market, so they have gradually become the hot topic of research. However, disclosing quarterly reports has a short history, so there are many problems, for example the information disclosed is lacking in timeliness, sufficiency and dependability. All of those make the information user aware of the fact that there is no information content related to their decision-making in the quarterly finance reports disclosed by our listed company. Therefore, whether the quarterly finance reports disclosed by our listed company have information content is an urgent task for us. The paper tests the usefulness of quarterly finance reports by testing the stock price and trading volume before disclosing quarterly finance reports and after that.In the process of research from the angle of stock price, firstly, an analysis of average abnormal return is carried out to testing whether quarterly earnings are useful. Secondly, an analysis of earning response coefficient is made. I define unexpected earnings per share of net profit after non recurrent gain and loss and fully diluted as independent factor, and abnormal return as control factor, I make the regression equation. The research indicates that the stock price is sensitive to the disclosing of quarterly finance reports, and the stock is capable of making an anticipated response to the quarterly surplus, the efficiency of our stock market has become to be "semi-formula efficient". In the process of research from the angle of trading volume, I firstly make a sample native analysis on the average abnormal trading volume, the research tells the average abnormal trading volume gradually increases before disclosing quarterly earnings, and the average abnormal trading volume gradually reinstate after the disclosing day. This tells new and useful information reaches market on the disclosing day, so there are abnormal trading volume. Secondly, I establish the regression equation to make quantitative analysis, using cumulative abnormal return as independent factor and cumulative trade volume as control factor. The result tells that the disclosing of quarterly return will affect the abnormal return, and abnormal trading volume will increase notably, abnormal return and abnormal trading volume are notably correlative, quarterly finance reports have usefulness.