Individual Investors Disagreement And Earnings Announcement Effect

China’s securities market, which established from1990, has grown up to a large scale. Individual investors account for a significant proportion of all investors. As an important part of the market, Individual investors often stay on the weak status because of asymmetric information. The regular earnings announcement is one of the few deterministic message that individual investors can obtain. Therefore, study the relationship between the individual investors and earnings announcement effect helps to help us better promote the development of the market.We study the earnings announcement effect based on the investor disagreement view, we instruct the variable of investor disagreement by digging and analyzing the text messages discussed on board of the Internet. After empirical study we found that: Firstly, in the short term, the early investors’disagreement will positively predict the excess returns after the announcement; while in the long term, investors’disagreement will negatively predict the excess returns after the announcement, this result show a significant impact on the views of small investors in the stock market. Secondly, whether the news is good or bad and management’s behavior will affect earnings announcement effect through the investor disagreement. Thirdly, to further consider the impact of investors, we discuss the disagreement affected by announcement, the result shows that the greater the disagreement after announcement, the higher the excess returns.At last, we give some suggestions according to our results:First, make good use of the Internet, make a good balance between freedom of speech and Internet supervision; Second, Improve the level of information disclosure, to protect the interests of small investors. Third, Enhance investor education, improve risk awareness of investors.