Disclosure Of Accounting Information In The Stock Market

Accurate, sufficient and timely disclosure of information is the basis of an efficient and honest stock market .To improve a stock market's efficiency, it is most important to enhance the quality of the disclosure of the information, which has drawn much attention of accounting profession. This dissertation is about the disclosure of financial information .In the paper, the author tries to apply some useful economics theories in research of accounting information disclosure. These economics theories include the Efficient Capital Market Theory and Information Economics .Directed by these theories ,the paper analyses the disclosure of information in two kinds of stock market :AMERICA and CHINA and puts forward arguments and reasons .It is expected by the author to find some useful new ways to improve the status of information disclosure .There are three parts in this article.Chapter 1: the stock market and information.In modern society, stock market plays a very important role, for it has several special functions .To let these functions act, the evaluation system is necessary. Securities' price can present their real value. Accurate, sufficient and timely information disclosure will establish a suitable evaluation system .Of all this information, financial information is most important, it has presented the key information to evaluate a corporation: the expected cash flow in the future and the expected return rate. This is certified in this chapter.In chapter 2, the author tries to describe the status of the information in the American and Chinese stock markets. First, the author introduces the Efficient Capital Market Theory. In the model of this theory, it is accepted that American stock market is vice efficient and the efficiency of Chinese stock market is low, because there are many problems during the information disclosure. So, the author analyses the two markets in details and tries to find the reasons which are behind the behavior of the disclosure of information.In chapter 3, the author gives some advice to improve the quality of the information in stock market. First, the behavior of the information disclosure was analyzed from a new angle. The information is the output of the accounting behavior, and it is effected by the supply and demand. So, the author analyses the disclosure behavior from the two sides: supply and demand. In American stock market, the need of the information is satisfying. To improve the efficient of the market, we'd better enhance the corporation's own free will to disclose financial information and regulate the behavior better. To realize the goal, a new financial instrument is discussed.Different from American market, there are many special problems in Chinese stock market. Some unreasonable systems in the stock market lead to some special problems. In this chapter several suggestions are offered to settle the problems down.