Surplus Notice Information For Listed Companies To Disclose The Empirical Study Of The Effect

Information plays a leading role in market operation and function. To maintain fair information, and to promote information efficiency is the key to protect the investors' interest, and to realize resources-compounding. Earnings preannouncement practices the ideal of high quality information. This paper deals with the issues of earnings preannouncement disclosure of the listed companies in China. As an information disclosure rule, earnings preannouncement demands those companies whose earnings change a lot to preannounce earnings ahead of time to help the investors make decision. As a useful supplement to the periodic report, earnings preannouncement eliminating the asymmetry of information and information lag, improve the timeliness of information. It would help suppress internal transactions and achieve a fair and efficient capital market. The rule is gradually revealed under the concern of more and more people. Specifically, in which aspect does the rule of earnings preannouncement plays and how. With these questions in my mind, this study will do some research and give a certain suggestions.First, we sort out the development of earnings preannouncement system in the light of system vicissitude, and recall all the studies on earnings preannouncement in the stock market at home and abroad. Then, we choose 1072 listed Chinese companies that have A-shares on either Shanghai or Shenzhen Stock Exchange as our sample, come to empirical studies of the implementing effects of earnings preannouncement from three aspects. Firstly, whether it reduces the risks of the investment. Secondly, whether it improves the performance of the companies. Earnings preannouncement reduces the information asymmetry, improve the timeliness of information. In this paper we use a method to test the earnings management of listed companies, trying to understand: whether earnings preannouncement restrains earnings management. Thirdly, we use event analysis to observe the event reaction of single preannouncement disclosure (mainly annual earning preannouncement). Does annual earnings preannouncement pass any new information to the market? Does the timeliness of earnings preannouncement contain information?Based on the hypothesis, this paper designs three models to test the effects of earnings preannouncement. Through empirical analysis of the performance of listed companies in 2005, the results show: earnings preannouncement reaches its expectation, earnings preannouncement and its timeliness contents information. On the basis of empirical study and the problems that exist in reality, this paper provides several suggestions to prove the quality of earnings preannouncement information.