Study On The Choice Of The Annual Report Disclosure Time And Investor Reaction Based On Digital Chlture

In China, with the development of stock market, the number of listed companies is increasing and the scale is becoming larger. At the same time, investors’attention is also increasing. The information of listed companies needs the stock market to convey. The stock market becomes complex and open due to the variety of information. The most convenient way that investors could obtain the listed companies’information accurately is the annual report of the listed companies. To the listed companies themselves, the contents and the disclosure time of the annual report has become to be a skilled "art". People have preference for different digital due to the influence of traditional culture. They prefer 8 that it is considered as a symbol of auspicious. However 4 is considered as an unlucky number and avoided. This article mainly studied that whether the preference of numbers based on traditional culture will be reflected in the annual report disclosure time and how will the investors act.The paper used theoretical research and empirical research methods. Based on the influence of digital culture on making decisions, the paper selected digital 4 and 8 with the most cultural characteristics, to study the investors’reaction caused by the annual report disclosure time. First of all, the background and purpose of this study were discussed. Then the literature review and the relevant theoretical knowledge were conducted. Secondly, the study used the data of listed corporations of Shanghai’s A share markets from 2008 to 2014, and used the Event Study. Through calculating the normal earnings, estimating the excess returns and cumulative abnormal returns, and using descriptive statistics method, and other methods to analyze initially, then use multiple linear regressions for empirical test, finally we propose relevant recommendations.Empirical results show that people have the preference of different digital. It has become to be a common phenomenon. The listed companies tend to disclosure annual reports on the 8th date. From the group result of the annual report disclosure time, we find that listed companies are more likely to disclose the annual report on the 8th date than the 4th date.There is a "Day selected affection" based on the digital culture. The paper also proves that the disclosure of the annual report is not balanced. In China, people’s behavior will be affected by the number of deep-rooted cultural. From the results of the empirical analysis, the annual report disclosure date choosing the 4th date will cause the stock price movement, and it showed significant negative effect; however, the annual report disclosure date choosing the 8th date will also cause the stock price movement, and it showed significant positive effect. By analyzing movement in cumulative abnormal stock returns, it also shows that China’s stock market has not reached the semi-strong efficient.