The Impact Of Financial Information Of Listed Companies On Stock Price

At the beginning of 2015, the stock market was on fire. Stock market which stimulated the enthusiasm of the whole nation had been activated. However, when people celebrated in bull market, A-share market suffered as much as 32% of slump at the end of the second quarter, which shook the whole market. Although through a series of actions, stock market tended to be stable. The investors, especially for those inexperienced small shareholders suffered heavy losses which were impossible to be ignored.So why dose the stock price fluctuate? What is the core factor of stock price? How can investors make rational decision, and successfully hedge risk in the risky stock market? It has extremely important practical significance to answer these questions. These questions are also the main content of this paper to explore.Factors that affect the stock price are complicated. Such as global economic background, domestic macro economy, the financial status of quoted companies,stock market policy and so on. All of them impact on stock market in varying degree. Value decide the price, so the intrinsic value of quoted companies is the most basic and critical factor which decided stock price fluctuation. And annual disclosed by listed companies is the key resources for investors analyzing quoted company’s financial situation which include profit ability, debt paying ability, operation efficiency and so on.As Chinese market reform in depth, financial information disclosure’s level and quality have been improved. Especially in the current, from the implementation of "B&R" global strategy to the establishment of "AIIB" which construct five continents moments, all of them bring favorable condition for our country’s securities market stepping into a new stage. So under the background of new era, it is necessary for us to reconsider the relationship between financial information and stock price, make inspection of the current accounting information value correlation degree, determine which financial information impact on the fluctuation of stock price heavily, study whether financial information can guide investors to make decisions, and so on.This paper uses cross-section regression and panel regression method based on ols and gls. Taking pharmaceutical manufacturing listed companies from A share as research samples, modifying and expanding the O-F model, building A comprehensive financial index system for listed companies. Through the empirical analysis to study the effect of financial information on stock prices and sum up the following conclusions:First, financial information and stock price does exist a certain correlation, But usefulness of accounting information in China remains to be further improved. Second, two key indexes which include earnings per share and net asset value per share have strong influence on stock price. The index of EPS’impact on stock price is long-term and stable, and net assets per share’s impact on share prices may be limited to the short-term. Third, financial indicators which influence stock prices are expanding. Market investors still focus more on profitability. Fourth, low growth of unstable stock return is lower than low speed growth of stable stock return. Fast growth of unstable company yields is higher than fast growth of stable company.