An Empirical Analysis On The Relevance Of Selling Expenses And The Breadth Of The Owner's Equity,Stock Liquidity,Volatility In The Chinese Stock Market

In the stock market,high-quality accounting information is an effective way to deliver the intrinsic value of the share,accounting financial statements of listed companies is the important information to the public.According to the quality of the accounting information,it is reliable,relevant,understandable,comparable,important,timeliness.Sales are the focus of the company's competitive.Sales need manual labor, material and financial resources.Selling expenses are the factor in the financial statements.Cost of sales will help the companies to improve the production and establish a good brand image.If the company has no selling expenses,it means that the company is facing a crisis of sales,to some extent,such as a potential risk of loss,lack of recognition,selling blocked and severe cases which may lead the company can not operate,even then lead the company to a bankruptcy. Selling expenses are the the key factor to the company.In this paper, we use cost of sales which belongs to accounting information to analyze the main correlations of the numbers of individual investors,stock liquidity,volatility in Chinese stock market.From 2003 to 2013,I collected 346 companies ' data in Shanghai and Shenzhen stock market and used panel data regression to analyze their relation in multiple perspectives.Through empirical research, we found that in the stock market, the cost of sales has different relationships with the number of individual investors,the stock liquidity,volatility.As a reminder,stocks investors and the authorities should use of accounting information reasonable and effective.The managers of the company can adjust the cost of the sales,making the cost of the sales match the development of the company.