Research on the explanation power of accounting information of annual report of listed companies of stock price—Based on econometric model concept of empirical accounting theory

摘要

The paper studies the explanatory power of accounting information of the annual report on China's listed companies to the stock price. It uses the Annual Report of China's listed companies as the research object. Based on the research results of F- O model, the paper builds regression models for research on the explanatory power of accounting information of the china's listed companies to stock price. It also uses research methods based on empirical accounting theory. The paper divides accounting information of Annual Report of China's listed companies into four categories. The first category concludes the accounting information which can reflect profitability of listed companies. The second category concludes the accounting information which can reflect the debt paying capability of listed companies. The third category concludes the accounting information which can reflect operating ability of listed companies. The forth category concludes the accounting information which can reflect growth ability of listed companies. The paper uses the four different types of accounting information and stock price to build some regression models for research on the explanatory power of accounting information of the annual report on China's listed companies to the stock price. The paper uses SPSS statistical software to analyze the sample data. It comes to conclusions that these four categories of accounting information, which is reflecting the profitability, debt paying capability, operating capacity, and growth ability of the listed companies, can be combined to be the strongest explanation power to the stock price. The conclusion is useful to the investors when they use these four categories of accounting information to make decision.