A Research About Relation Between Public Companies’ Accounting Information And Stock Price

Valuation of securities in the securities market has been the research’s core.Accounting information of financial reports of listed companies is very important valuatingindicator when people value the companies’ stock price. One of the empirical accountingresearch focuses is the study about the relationship between the Accounting informationand stock price in capital markets. It extends the scope of the study accounting, andpromotes the development of empirical accounting research.In reference to Feltham-Ohlson model and relevant research results, this paperproposes a revised research model, and describes the status and trends of the various factorsof listed company financial reports in our country’s Shenzhen Stock Exchange’s GEMboard. The study samples in this paper are2009-2012GEM listed companies. Firstly thethesis focuses on three kinds of accounting data (book value/cash flow/earning per share).Empirical studies not only validate the price of accounting information relevance, alsovalidate how the accounting data affects the company’s stock price.With consideration of the current financial analysis system and the expansion of themodified model calculation results, this article studies the relationship between stock pricesof listed companies’ six different kind of accounting information. According to the resultsof the empirical analysis, every kind of accounting information is divided into three levelsof information. In the end this article builds a new financial analysis framework of publiccompany for the ordinary investors based on the econometric analysis results of listedcompanies on GEM.