Correlation Research Between Stock Price And Accounting Information In China

The basic function of securities market is to optimize the allocation of resources by the use of signaling mechanism of stock prices, a healthy securities market have important roles to play in improving the development of national economy. Our stock market is on the crucial time of transformation which is an important part of our capital market. In this context, the study of the relation of stock prices and accounting information of our public companies not only has theoretical significance in accounting theorists, but also has very important implications for the regulation of securities market, the reform of the accounting system and investors decision-making. Based on the former study, this article is mainly uses empirical research method to study the relation between stock prices and accounting information of our public companies.This article first analyzes and discusses related theory of accounting information and stock prices, and then creates empirical model according to the study form of measurement perspective, picks the data of accounting information and stock prices of our public companies in Shanghai in2010and2011separately to conduct empirical analysis. The analysis results indicate, the correlation between public companies stock prices and accounting information is reinforcing gradually, for example, there is a significantly positive correlation between stock prices and assets turnover, and also between stock prices and earnings per share, and there is a significantly negative correlation between stock prices and return on equity, the negative correlation between stock prices and ROE shows that the stocks didn’t return to national prices. The data of2010and2011both prove that stock prices and assets liability ratio have positive correlation, which showed in general that the leverage level of our public companies remain low. In addition, the low correlation between stock prices and operating cash flow per share shows that market don’t pay enough attention to cash flow which is an important indicator. The negative correlation between total assets growth rate of2011data, compared with the positive correlation of2010, showed to some extent that our public companies’limitations in operating and managing. Meanwhile, this article uses OF model to calculate stock intrinsic value, analyzes the deviation between stock prices and intrinsic value by comparing stock prices and intrinsic value. The results indicate that there is serious bubble in our stock market.Finally, this article analyzes the causes of the empirical results, and present recommendations from the aspects of the quality of listed companies, the basic system of stock market and the efficiency of accounting information disclosure.