Study On The Differences Between Chinese Listing Corporation Value Relevance Of Accounting Information

The value relevance of accounting information is one of the important areas of thecapital markets accounting research. We often use the event study method in the studyof the value relevance of accounting information, using the adjusted R2of regressionmodels as a way to measure value relevance of accounting information. For themeasurement method of R2,abroad literature indicates R2will be impacted byeconomies of scale、accounting recognition delays and other factors, Therefore it canonly provide explanatory power for a particular sample. Domestic literature has rarestudy about problems of the measurement of R2. Because the adjusted R2of regressionmodel is not a good measure of the value relevance of accounting information,previous studies about value relevance may have problem. Therefore, we believe it isnecessary to re-examine the value relevance of accounting information.There are problems use adjust R2of model to measure the value relevance ofaccounting information, this paper we will use coefficient comparison to measure thevalue relevance of accounting information. First, we propose a decision correlationindex, use this indicator can effectively achieve the sample classification. Secondly,we value the differences in the correlation between the Shanghai and Shenzhen listedcompanies have been tested. Finally, we study the differences of Chinese listedCorporation value relevance of accounting informationThis paper takes2007-2013years in Shanghai and Shenzhen A shares976listingCorporation as a sample, the net assets per share earnings and share price threeindicators as our object of study, using decision correlation index to classify thesample, then on the use of EVIEWS6.0samples regression analysis and differenceanalysis. The main conclusion as following:(1) In different groups, the regressioncoefficient of earnings per share is always very significant, while the coefficient ofnet assets per share is not necessarily.(2) Use the value of the correlation regressionmodel adjusted R2measure of accounting information is problematic.(3) The use ofdecision related index can effectively classify the full sample.(4) The-sample whichcomes from Shenzhen and Shanghai two different markets has same valuerelevance.(5) By difference analysis, we found differences in the value relevance ofaccounting information of listed companies in China have some continuity. The innovation of this paper is to use the decision-making related to the degreeof indicators to classify the samples, while using relatively variable coefficientinstead of adjust R2to measure high and low of the correlation. This research methodhas verified the view point of foreign scholars, adjusted R2of regression model canonly provide explanatory power for a specific sample. The shortage of this paper is toselect only the earnings per share and net assets per share as representative indicatorsof accounting information, it may miss some of the variables.