The Study Of Signaling Effect Based On Accounting Information Transparency

After Enron, People began to pay attention on “Transparency of information”. To builda mature and efficient financial market, it is necessary to discuss the theme of“Transparency of information”.Whether to improve the transparency of accounting information and reduce the unfairtrade caused by information asymmetry can raise the confidence of investors is the mainproblem of this study. First, start from the analysis of transparency of accountinginformation, taking the applicability of Chinese securities market into account, taking thequality assessment notice released by the Shenzhen Stock Exchange as measured, respectivefrom both the effects of disclosure and announcement effects to make the evaluation ofinformation transparency. Empirical research methods including the use of event studymethod and correlation analysis.The main conclusions of this paper are as follows：Firstly, changes in informationtransparency indeed can send the value signal of enterprise out to the market. Except thecorrelation with the current operating performance, it also has a relationship with theoperation performance which happened in the next period. Secondly, when we classified themarket reaction in different ways, we found that it has a strong reaction in the worsttransparency, but to other levels, the responses are mild. Can be seen, the loss of interests ofsmall investors is caused by the information asymmetry, it can severely distort the marketefficiency of resource allocation which become the majority of investors criticism. Thirdly,market response to changes in information transparency is lagging behind; the most intensehappened in the two-days after the announcement. From all above，there is the signalingeffect of accounting information transparency, but not complete.