The Interim Financial Report Accounting Earnings And Stock Price Volatility, The Empirical Research

The generation and constantly improvement and perfect of interim finance reports has increased the efficiency of information disclosure. It is more useful in decision making than year finance reports. Because of these, interim finance reports are helpful in getting rid of information dissymmetry and incompleteness, repressing actions of inner trade and cheat. They are also helpful in realizing fairness and efficiency of stock market. They have gradually become the hot topic of research. It has been twelve years since the listed company of China started to disclose interim finance reports in 1993. In the past twelve years, substantial progress has been made in the interim finance reports which our listed company disclosed. However, many problems are also discovered at the same time. There are many blanks in the theories research. For example, whether interim surplus has impact on the fluctuant of stock price? Whether the investors can make differences between the different parts of surplus? How many information contents that the permanence surplus has? Which kind of surplus has more information contents compared with the total surplus? Which factors can also impact the stock price besides the surplus? Etc. This paper tries to answer some of the questions through empirical study. In the process of research, I make an analysis of earning response coefficient. On the basis of samples and test window selection, a regression equation is established between the interim surplus and cumulative abnormal return to carry out quantitative analysis. I define unexpected earnings per share of net profit after non recurrent gain and loss and fully diluted as independent factor, and interim interest dispatch project, net cash flow per share from operating activities, net assets per share after adjusted as control factors. I also compart the results of the regression equation which takes the unexpected earnings per share of net profit after non recurrent gain and loss and fully diluted as independent factor with the results of the regression equation which takes the unexpected earnings per share of net profit and fully diluted as independent factor. The research indicates that the unexpected earnings per share of net profit after non recurrent gain and loss and fully diluted has the information content relevant to the stock prices, and the former has more information content than the latter. That means that the investors are rational. They can make differences between different parts of surplus. The interim interest dispatch project can contribute to explain the fluctuation of stock prices on the basis of accountancy's surplus. Net assets per share after adjusted is not relevant to the fluctuation of stock prices. Net cash flow per share from operating activities is relevant to the fluctuation of stock prices in separate years. The interim surplus has information content relevant to the fluctuation of stock prices in the test window which starts before the interim surplus is disclosed, but it has no information content relevant to the fluctuation of stock prices in the test window which starts after the interim surplus is disclosed. This shows that the stock market is capable of making an anticipated response to the interim surplus and the efficiency of Shanghai stock market has come to be "semi-strong-formula efficient".