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Information Efficiency of Financial Statement on the Firm Value

재무정보와 시장효율성에 관한 연구

  • Jeong, Seonhye (Dept. of Business Administration, Kumoh National Institute of Technology) ;
  • Lee, Younghwan (Dept. of Business Administration, Kumoh National Institute of Technology)
  • 정선혜 (금오공과대학교 경영학과) ;
  • 이용환 (금오공과대학교 경영학과)
  • Received : 2016.05.30
  • Accepted : 2016.10.20
  • Published : 2016.10.28

Abstract

This study examines information efficiency of financial information on the firm value for the listed manufacturing companies in Korea stock market in terms of timing pattern of information. We set 3 different test periods based on the financial statement released years - the current year, 90 days before financial statement announcement and the next year. We introduce using the stepwise regression method to examine the effect of financial variables on the stock returns. The financial variables include profitability ratio, growth ratio, stability ratio, activity ratio and market valuation ratio. The results of the study showed that both growth and profitability ratio affected the current year stock returns, while stability and activity ratio affected the next year stock returns. Growth rate of total asset affects both current year and next year stock returns. Our findings imply that the period in which financial information is reflected in the firm value, could vary with the characteristics of financial information.

Keywords

Financial Information;Firm Value;Information Efficiency;Information Effect;Convergence

Acknowledgement

Supported by : Kumoh national institute of technology

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