Accounting Information Comparability And Asset Mispricing

Since the beginning of the 21st century,the multiple large fluctuations of the global financial market have also caused tremendous impact on China's stock market.However,compared with foreign advanced economies,China's capital market development is still relatively backward,and various system constructions are not perfect.The phenomenon that corporate stocks deviate from intrinsic value is more common,that is,the problem of asset mispricing is prominent.However,the long-standing share price deviation will have a huge obstacle as the capital market plays its resource configuration orderly.This will not only cause waste of resources,which will damage the interests of investors and enterprises,but also cause harm to the transformation and upgrading of current real economy of China.Therefore,strengthening the research on the mispricing of corporate assets to discover its formation mechanism,and taking measures to alleviate its adverse effects,have become a hot topic that many scholars are concerned about.The capital market is essentially an information market where resources can be optimally configured by the continuous flow of information among market participants.The stock price reflects how the market participants master the market information.However,due to the objective information asymmetry between the information provider and the information demander,it is difficult for investors to make a correct judgment on the value of the enterprise.Therefore,the root of asset mispricing lies in the uneven distribution of information.Is it possible to alleviate asset mispricing if the quality of corporate information disclosure could be improved to reduce the degree of information asymmetry? Accounting information comparability is one of the important indicators to measure the quality of enterprise information.It means that accounting information should be comparable to each other in the case of similar economic business,and it also will reflect the difference between the two in the case of different economic business.It can be seen that when the comparability of corporate accounting information is high,information demanders can obtain more information about the enterprise from the financial announcements issued by their industry peers to improve the usefulness of their decision-making,and then the efficiency of capital market operation could be improved.Therefore,based on the effective market theory,information asymmetry theory and principal-agent theory,this paper selects the data of listed companies in Shanghai-Shenzhen Ashares from 2010 to 2018 as research samples and establishes an empirical model to explore the impact of accounting information comparability on asset mispricing.The study found that: 1.The higher the comparability of enterprise accounting information,the lower the degree of mispricing of assets;2.Further path test found that(1)comparable accounting information enables investors to form effective supervision over management and reduce management agents Cost,which further alleviates the degree of mispricing of assets;(2)comparable accounting information also improves the accuracy of securities analysts' earnings forecasts,timely transmits corporate information to investors,and promotes the stock price of enterprises to match their intrinsic value;3.Finally,this paper introduces other external and internal governance mechanisms in the part of expansion research,and finds that(1)when an enterprise is audited by an industry-specialized firm,the inhibitory effect of comparable accounting information on asset mispricing is enhanced;(2)comparable accounting information is also conducive to the media's tracking of enterprise information.Under the combined effect of the two,mispricing of enterprise assets is also effectively alleviated;(3)the comparable accounting information is also conducive to institutional investors' supervision of the company's management,which pushes the stock price of the company into line with its intrinsic value.In view of the long-term existence of stock prices deviating from the intrinsic value of enterprises in China's stock market,this paper studies the impact of information disclosure quality on asset mispricing from the perspective of accounting information comparability,which not only enriches the research content of comparable economic consequences of accounting information,but also promotes The rational allocation of capital market resources and the protection of investors' interests are of great significance.Moreover,this paper also considers the comparability of accounting information and other supervision mechanism,further reveals the scope of the impact mechanism of comparable accounting information on enterprises,and is conducive to promoting the healthy and orderly development of enterprises.