Research On The Value Relevance Of Information On Financial Leeway Of Listed Companies

Corporate accounting information as an important vehicle to demonstrate the value of enterprises,investors’ reaction to corporate accounting information will be reflected in the stock price.With the rapid development of China’s economy and in the face of an increasingly active stock market,it has become particularly important to study which accounting information can affect stock prices and which accounting information is useful.There are views in academic circles that when enterprises have abundant capital,they have stronger ability to cope with debts and unexpected situations,and the financial excesses of enterprises can enhance investors’ confidence.At present,in China,a considerable proportion of the capital market is occupied by listed companies with financial excesses.So whether the information reflecting the degree of capital generosity of enterprises is used by investors and whether it really affects investors’ decisions is a question worth exploring.Therefore,this paper starts from the information of financial excesses of enterprises,selects two accounting information that can reflect the degree of capital generosity of enterprises,financial excesses index and operating cash flow,and empirically analyzes the relationship between them and share prices,in order to investigate whether and what kind of value relevance the information of financial excesses of listed companies has.In this paper,we select listed companies on the main board of A-shares in Shenzhen and Shanghai from 2015 to 2020 as the sample,and use multiple regression analysis,based on the basic regression,we also group listed companies with different property rights and corporate governance ability,and add the moderating variable of executive shareholding to investigate how executive shareholding affects the value relevance of capital adequacy information.The value relevance of capital generosity information of listed companies is discussed from multiple perspectives.The results of this paper show that the financial abundance index,operating cash flow and stock price have a significant positive relationship,i.e.,the information on capital abundance of listed companies has value relevance.The value relevance of capital adequacy information is higher for private enterprises and listed companies with high corporate governance than for state-owned enterprises and listed companies with low corporate governance.Meanwhile,the value relevance of capital generosity information of listed companies is promoted by the shareholding of executives.This paper expands the research content of value relevance and capital generosity and adds the theoretical contribution to the relevant research to a certain extent.The research results of this paper have some reference value for the market value management of listed companies and investors to improve their investment decision making ability.