Research On The Relationship Of GEM Stock Price And Accounting Information, Investor Behavior

Since the GEM(Growth Enterprise Market) of China was opened on October 30 in 2009,it has got a rapid development.At the beginning,there are only 28 companies listed on the GEM,but now the number has exceeded 490.The establishment of the GEM provides a good financing platform for many small and medium innovative companies and they obtained the needed funds to promote the development of their companies.The GEM stock market has a high-speed development,however,due to the imperfections of the related rules,it also generated a lot of problems,such as the problem of high price-earnings ratio and high turnover on the market,the problem of the share prices excessive rise and fall,the problem of the enhancing speculative atmosphere,and so on.These problems make many investors who are interested in investing the companies listed on the GEM do not understand the reasons of the current stock price volatility so as to give up their investment.In this paper,in order to explore the relationship of GEM stock price and accounting information, investor behavior,first,from the perspective of listed companies,based on the residual income theory and model,we build a multiple regression model to prove whether the accounting information of the companies listed the GEM has a explanatory power for the the stock price. The empirical results show that the accounting information has value relevance with the stock price,but in the recent years.due to the immaturity of the GEM,the explanatory power is decreasing year by year.Then,from the perspective of investors,with the help of behavioral finance theory,we qualitatively analyze that due to the constant influence of the investor decision-making behavior, the stock price of the GEM deviates from its intrinsic value and fluctuates in the new price.Finally,in order to help the GEM better act as a financing platform and better function as a value finder,this paper presents related suggestions: At the GEM market level,the relevant institutions should continue to establish a sound legal system of the GEM regulatory and strengthen the supervision to the listed companies;At the investor level,we should continue to cultivate mature and rational institutional investors and individual investors.