Accounting Information and Stock Price Reaction of Listed Companies — Empirical Evidence from 60 Listed Companies in Shanghai Stock Exchange

Abstract: With the development of China’s capital market, the function and impact of Chinese listed companies has been more and more significant, especially the accounting information of the listed companies has an important effect on the quoted companies ’ stock price and investors’ behavior in the market. The research of this paper empirically analyzes the relationship between accounting information and stock price with a few accounting information indexes. The results, based on 60 listed companies in Shanghai Stock Exchange for 2011, reveal: (1) positive relationship exists between accounting information and stock price, but the significant degree varies; (2) earnings per share and return on equity have the most significant correlation.