An Empirical Study On The Correlation Between Accounting Information And Stock Price Of Listed Companies In Different Industries

Although China's stock market has made great achievements at present,it still belongs to emerging markets,and there is still a big gap compared with mature markets.Due to the large number of retail investors,the overall market is less effective,the speculative atmosphere is stronger,and there are few real value investors.However,since 2017,the Shanghai Stock Exchange Index and Shanghai-Shenzhen 300 Index have all reached new highs.More and more people are paying more attention to value investment and more concerned about the accounting information disclosed by listed companies.The accounting information in financial reports can Fully reflect the value and price of the company,so it is of great significance to study the correlation between the accounting information of the listed company and the stock price.Since listed companies in different industries have different asset models and different business models,the correlations and regression models between the accounting information and stock prices of listed companies in various industries will also be different.Therefore,a total of nine industries will be studied separately and then conducted comparative analysis.This article is divided into five chapters.The first chapter is the introduction,expounds the research background,purpose,and significance of this article.Then it introduces the literature review,summarizes the domestic and foreign customs literature,reviews these studies,and establishes the article.Research methods,article frameworks,and finally,the innovations in this article.The second chapter is the related theory,including the effective market hypothesis,the value relevance theory,and the residual income valuation model.The third chapter is the research design,including the selection of samples and indicators,data sources and model design.The fourth chapter is an empirical analysis,which analyzes the correlation of industries,selects indicators that pass the Pearson correlation test,introduces models using stepwise regression,and establishes a corresponding multiple regression model to analyze the results.The fifth chapter is the research conclusions and countermeasures.The conclusions drawn from the empirical analysis are summarized and summarized,and the policy recommendations are proposed.The main conclusions are as follows:(1)There is a certain correlation between stock prices and accounting information of listed companies.Different types of financial indicators have different effects on the stock price of each industry,but the profitability indicators generally have higher influence than other indicators.(2)From the adjusted R of each industry,we can see that the overall goodness of fit is not high,indicating that the accounting information is still not a good description of the stock price,and the market efficiency in China is still far from being semi-strongly effective..(3)The stock prices of different industries have different correlations for different categories of financial indicators.It can be clearly seen that the financial indicators related to each industry are significantly different from those introduced into the model,especially those with large industry differences.(4)The stock prices in different periods in the same industry have different correlations for different categories of financial indicators.It can be seen that even for companies in the same industry,the indicators that are significantly relevant in different periods will be very different.From the specific industry point of view:(5)Both the energy industry and the material industry are cyclical industries.When the market is in a downturn in 2015,investors will give priority to the solvency indicators.When the market improves in 2016,they will focus on profitability indicators,especially the total asset net rate.It is also necessary to consider the fixed asset investment expansion rate and operating income growth rate in the indicator of growth capability;companies in the industrial sector are all heavy asset types,and net assets per share are the first indicators to consider.Profitability has a greater ability to explain stock prices,and the coefficient of total asset net interest rate is also relatively large;consumption and health care industries are relatively stable,and are less affected by the economic cycle.Profitability has the most significant impact on these non-cyclical industries.Net assets per share The total net asset value is the most important;the financial industry is a highly indebted industry.Net assets are the most important indicators of the financial industry.The financial industry has a large number of long-term liabilities and bad assets.If the turnover of assets is fast,it indicates that the business development is better.Therefore,we should focus on the turnover rate of total assets;the information technology industry is a high-tech industry,and the growth of profitability is uncertain.As the industry is more inclined to equity financing,net assets are the most important indicator.The return on net assets that is closely related to net assets reflects the profitability of shareholders' own funds and has strong explanatory power.The public utilities industry is all state-owned monopoly enterprises.Profitability indicators other than net assets do not need to be considered.The faster the turnover of accounts receivable and fixed assets,the better the company's operations,so we need to pay attention to the indicators of operating capacity.At the same time,the operating income growth rate also has strong explanatory power;the real estate industry is a highly capital-intensive enterprise,so net assets are the first thing to pay attention to.Due to the special nature of the industry,when the market is not good,it is necessary to pay attention to short-term solvency,that is,current liabilities.Because the industry's overall liabilities are relatively high,it is also necessary to pay attention to long-term solvency,that is,asset-liability ratio.When the market is good,we need to pay attention to the liquidity turnover rate.At the same time,the total asset growth rate also has strong explanatory power.According to the empirical analysis of the conclusions,the corresponding countermeasures and suggestions are proposed: to improve the information disclosure mechanism;to strengthen supervision in all aspects;to establish and improve relevant laws and regulations;to increase the proportion of institutional investors;investors themselves need to raise investment levels.