The Study Of Signaling Effect Of Earning Preannouncement For Listed Companies In China

In order to improve the relevance of accounting information to enable investors to obtain reliable information timely, many countries have made the requirement of earning preannouncement. Our country implemented the system of earning preannouncement in 1998. Earning preannouncement is mandatory disclosure information in our country, while abroad it is voluntary disclosure information, so our related research has not been mature yet. In recent years, with the development of our capital market, the system of earning preannouncement which is used to improve the timeliness of accounting information attracts the investors, and scholars from our country pay close attention to the earning preannouncement increasingly.This paper describes the concept of earning preannouncement and its system changes at first, then analyzes the signaling effect of the earning preannouncement on the bases of the theory of signaling effect and effective market, after that writer selects the listed companies which preannounced the 2004-2006 annual report as a sample, makes the empirical research on their price's market reaction before and after the preannounce day by the use of event study, and then analyzes how does the preannouncement nature, preannouncement type, and the size of company impact the signaling effect of earning preannouncement, at the same time, analyzes does the reform of the shareholder structure of listed companies improve the disclosure effect of the earning preannouncement. Finally, writer makes some suggestions for the improvement and perfection of earning preannouncement for Listed Companies in China.