Disclosure Of Earnings Information Of Listed Companies And Stock Price Correlation

The issue discussed in this paper is the relativity of disclosure of accounting income with stock price. This paper comprises two parts: theory part and application part.In the theory part, the author begins the discussion with the accounting income under the ideal conditions, and then expands to the accounting income under real world market. Two models are used to illustrate how the accounting income is relative to the stock price. Effective market hypothesis and capital asset pricing model are also discussed here as the base of empirical accounting research.In the application part, the author, using the events research approach, empirically analyses the relativity of accounting income with stock price, based on the historical data of type A stocks from January 2, 2000 to May 31, 2000. Some measures with regard to improve the qualities of accounting information are also suggested.