Nationalaudit Announcement And Market Reaction,Quality Of The National Information

Audit is an integral part of national system.It is to ensure the national economic health of the immune system in essence.The national audit is an important part of national governance system.National audit proclamation system is one of the important path of national audit to achieve governance functions.National audit proclamation contains government budget and the financial information of the listed company.It provides an important platform for the people to the supervision of the nation.After ten years of development.The number has increased year by year.And the content of announcement also increased widely.The national audit office has played a large role in the protection of state-owned assets.In this paper,we study national audit proclamation,market reaction and state holding listed company financial information quality.The empirical part of the article mainly has two parts.In the first part,we analysis the influence of the national audit to the financial information quality of state-owned listed companies.We select state-owned listed companies as research samples to observe the stock returns and market returns after the announcement.Then,we can observe whether the national audit announcement will cause the capital market reaction.In the second part,state owned listed companies financial information quality can be described in three aspects.Surplus radical degrees can be expressed with DA.Surplus persistence can be calculated by the DD model.Surplus smoothness can be described with correlation coefficient between the change of the profit-making accrued items and the change of operating cash flow.The innovation of this article is from the point of view of the empirical research to the national audit announcement.This article is from many angle to check the quality of the accounting information.A variety of methods can increase the reality of the authenticity.Through the study,we can find that national audit proclamation affect state holding listed company's stock returns.It causes the reaction in the capital market.The management of the company will be under the pressure.Then,they will improve the quality of financial information.