Empirical Study On The Information Content Of The Surplus In Interim Finance Reports

It has been 15 years, since the listed company of China started to disclose interim finance reports in 1993. In the past 15 years, substantial progress has been made in the interim finance reports which our listed company disclosed. However, many problems were also discovered at the same time, for example, the information disclosed in the interim finance reports is lacking in timeliness, sufficiency and dependability. All of those make the information user aware of the fact that there is no information content. Therefore, whether the interim finance reports have information content is an urgent task for us. Because the history of China's securities market is not long, the academia of china has not conducted deep and systemic research in this field. With this background, the paper is trying to make an empirical study on the information content of interim finance reports our listed company disclosed. In the process of research, firstly, using a qualitative analysis of cumulative average abnormal return is carried to analyses whether the interim surplus has information content. Secondly, using a quantitative analysis of earning response coefficient is made. Finally, on the basis of qualitative and quantitative analysis, the paper compares the differences between the information content in Shanghai and Shenzhen Stock Markets. The research indicates that the interim surplus has the information content relevant to the stock prices, and there are differences in the information content of interim surplus in different accounting interim within the time of our research. It also reveals that no statistical distinction between the information content of interim surplus in Shanghai and Shenzhen Stock Markets. The paper also demonstrates that the interim surplus disclosed has the information content relevant to the stock prices in the test window which starts before and after the interim surplus is disclosed,. This shows that the market is capable of making an anticipated response to the interim surplus and the efficiency of our stock market hasn't become to be "semi-strong-formula efficient".