Accounting information boosts stock prices in emerging markets like China.
The article explores how financial accounting information affects stock prices in China. The researchers analyzed data from over 1,200 listed companies in the Shanghai and Shenzhen Stock Exchange. They found that factors like profitability, liquidity, and operational efficiency have a positive impact on stock prices. Earnings per share, current ratio, and quick ratio also significantly influence market share prices. This study provides valuable insights for both foreign and domestic investors, especially those in China, helping them make informed investment decisions based on companies' accounting information.