The Impact Of Transparency Of Accounting Information On Stock Price Informativeness

In the stock market, the optimal allocation of resources is achieved through theinformation to influence stock prices. The information of affecting stock prices is mainlyderived from the three levels of the market, industry and company. Stock priceinformativeness refers to the stock price reflected in the information of the corporate level.The fundamental value of the stock is decided by company-level information which canalso affect the synchronization of stock price volatility. Price includes the morecompany-level information,the closer to the real value of the company. China’s securitiesmarket has long been considered a "policy market",and has strong price volatility that wesay normally “up with total fall” phenomenon. It means lower stock price informationcontent of China’s securities market, so that destruction of the stock price signalingmechanism, weakening the efficiency of resource allocation of the stock market.Transparency of information is an important guarantee of the effective operation of thesecurities market,and the accounting information transparency of listed companies is one ofthe important measures to protect investors, and also has an important impact on the stockprice information content.In view of this dissertation, the transparency of accounting information on the impactof stock price informativeness is discussed in this article. It first summarizes and analyzeshow stock prices have informativeness, and also analyzes the contact of the transparency ofaccounting information and stock price informativeness based on the efficient capitalmarket hypothesis and behavioral finance theory. Value of the study sample followed by the3491observations of the2007-2010A shares of the Main Board listed companies, the useof asynchronous measure of stock price information content of stock price volatility andsurplus radical degree as a proxy variable of the transparency of accounting information,this paper examined the accounting transparency of information on the direction of theimpact and influence of the stock price information content.Empirical evidence shows thatthe informativeness of China’s securities market shares increase year by year, and therelationship between the performance of the transparency of accounting information andstock price informativeness as a significant negative correlation.Further evidence showsthat negative earnings management of listed companies on the stock price informativenesssignificantly affect,and the positive earnings management and stock price informationcontent does not exist a significant relationship.