Study On The Prediction Value Of Listed Company’s Interim Financial Report

As an essential supplement of annual reports, the interim financial report recovers the deficiencies of annual reports caused by its long period, and provides timely and effective information for decision-makers. It has been 20 years since the Chinese State Council started requiring disclosure of interim financial report in 1993. The system of interim financial report is being gradually perfect. The discrete views of interim financial report can guarantee reliability of information, however, information users are increasingly interested in the interim financial report’s correlation. Therefore, this paper studies the predictive value------an important aspect of interim financial report’s correlation, based on the relevant research at home and abroad. These researches have improved the interim financial report’s quality and provided more valuable references for the correlation.This paper previously introduces the background and significance of the subject, then summarises current research status. Secondly, the theoretical basis of the predictive value is outlined. The analysis of factors effecting the predictive value is the next. Meanwhile, some relevance research hypothesis are raised. After that, the researches have selected some interim financial reports from listed companies of Shenzhen Stock Exchange, then apply 9 interim prediction models and 3 annual prediction models, choosing earning per share and sales revenue as prediction index, to predictive the annual earning. Then we analyse whether interim financial report has predictive value by using three methods. This paper also test the effects on the predictive value from the non-mandatory auditing system, ST and PT system. Finally, there would be analyse, summary and suggestion on the result of the empirical test.The research conclusions indicate:In China, compared to annual financial reports, the interim financial report provides relatively higher predictive value; The interim auditing can improve the predictive value; In terms of prediction index of sales revenue, the predictive value of general listed companies are remarkably higher than the listed companies’ from the ST and PT. In contrast, in terms of prediction index of earning per share, the predictive value of the general listed companies are not remarkably higher.