A Study On The Correlation Between Accounting Information Disclosure And Stock Price Fluctuation In China Construction Bank

Bank’s assets and liabilities are constituted by a large number of financial instruments, derivative financial instruments; China’s current GAAP (Generally Accepted Accounting Principles) also requires the measurement of financial assets and financial liabilities at fair value. Moderate use of fair value is one of the highlights in our current corporate accounting standards. This is not only conducive to China Accounting Standards for business enterprises and IFRS (International Financial Reporting Standards) convergence, but also meets the requirements of China’s current market economy. After the fair value measurement of assets and liabilities, disclosure of accounting information, such as the impact on the company’s stock price? With the disclosure of accounting information, how its stock price volatility in the stock market? How the law fluctuations? These problems are both investors to make decisions based primarily on, but also the bank’s managers to improve their business management issues of concern.For accounting information disclosure and price fluctuations, In this paper, based on the analysis of the specification, disclosure of accounting information of CCB (China Construction Bank) and its volatility related issues commenced discussion. Select the financial data of CCB from2007to2012for empirical research, The results showed that:there was a negative correlation between the stock price and its net financial assets per share; there was a positive correlation between the stock price and the net asset value per share after excluding net financial assets; there was a positive correlation between gains and losses and changes in fair value per share.Bank as one of the leading financial industry, with a large number of financial instruments and derivative financial instruments, and the future value of financial instruments is uncertain. Stand point of investors’ view, this uncertainty will affect the investment of investors, thereby affecting the stock market share prices of commercial banks. Thus, there is a negative correlation between the share price and net financial assets per share. From the perspective of the original data, CCB net asset number is greater than the net financial assets, so between stock price and net assets per share excluding net financial assets per share is a positive correlation, but the absolute value of the coefficient is smaller than the share price and the correlation coefficient between the net financial assets per share. Therefore, investors in the market are not only consider the bank’s assets, the net assets of information, investors are more concerned about the bank’s assets, financial instruments included in net assets, derivative financial instruments and other information.CCB stock price and the fair value gain or loss per share is a positive correlation. This indicates changes in the fair value gain or loss has significant value relevance. With the current accounting standards in promoting the use of fair value, the fair value measurement attribute the increase in the bank’s use of accounting information content of information, instructions in the use of the fair value of our investment decisions of investors and stock prices have played an important effect, the use of fair value significantly increased the value relevance of accounting information.Research conclusion enlightens us, in order to improve and promote the healthy development of China’s securities market we should strengthen and perfect the content of the following aspects:First, perfect the information disclosure system---accounting information can be fully used by investors are based on the quality of accounting information disclosure, only guarantee the quality of accounting information disclosure, investors can make reasonable investment decision, eventually improve the effectiveness of the securities market. Second, improving the management of government and other regulatory agencies---market is in transition, create a good market environment is a very important role for the government, the government should give priority to with macroeconomic regulation and control in the market, try to reduce the interference on stock prices, gradually out of the stock market traders role; Government policy should also focus on the specification for the market on the formulation and implementation of a variety of system, the system can give full consideration to the interests of investors and expectations. Third, building a strong and effective capital market---capital market of our country belongs to the weak efficient market, we need various efforts aspiring the market develop to a mature and effective direction. Last, raise the level of investors---develop excellent psychological quality, set up the correct investment concept, enhance self-protection consciousness, from those three aspects cultivate and improve the investors’ own quality and ability.