Research On The Relationship Between Accounting Investor Protection Index And Stock Return Rate

With the continuous improvement of the capital market system,investors will have more opportunities to invest in the securities market.However,in recent years,the phenomenon of security frauds and financial scandals of listed companies in China have emerged in an endless stream,which has harmed the interests of investors and is not conducive to the healthy and stable operation of the capital market.The protection of investor interests has become an important topic in the capital market.The 19 th National Congress of the Communist Party of China and the Fifth National Financial Work Conference clearly stated that protecting the legitimate interests of investors is the top priority of the current capital market supervision work.The role of accounting in the capital market has become more and more prominent.The question of how accounting affects investor protection and further protects the interests of investors has become a hot topic for scholars.From the existing research results,most scholars only study the role of accounting information in investor protection mechanisms,and the relationship between a single financial indicator or accounting information and stock returns.Some scholars study the relationship between investor protection and stock returns from an accounting perspective.The Accounting Investor Protection Index of China's Listed Companies issued by the Investor Protection Research Center of Beijing Technology and Business University can provide a good idea for this aspect of research.Based on the review of related literatures and the previous studies,the article examines the accounting investor protection index of China's Shanghai and Shenzhen 300 Index constituents from the whole market,industry and regional perspectives.Then do empirical analysis of the relationship,using the panel regression model in the empirical analysis of the 277 listed companies in the 2011-2017 Shanghai and Shenzhen 300 Index,and get the following conclusions: First,There is a significant positive impact on the company's stock return rate in the next year on the accounting investor protection index of the Shanghai and Shenzhen 300 Index constituents.The better the protection of listed company investors,the higher the stock return rate in the next year.Second,from the perspective of industry and geography,there is also such a positive relationship between them,but the degree of influence is different.Combined with the research conclusions,this paper provides some opinions from investors,listed companies and relevant regulatory authorities,hoping to improve the protection status of investors in listed companies in China,enhance investor protection awareness,and avoid investor rights violations.