The Correlation Between Company Value and Financial Information:A Study on Listed Companies of China

This paper take 3890 observed values as sample from 778 listed companies ranging from 1998 to 2002 and investigate the correlation between company value and financial information.The results show:for ST and PT companies,company value is negatively related with synthetic short-term profit,but not significant;for companies publishing both stock A and stock B,company value is significantly positively related with synthetic short-term profit at the 0.01 level,profit measure provides about 2% explanatory capability to company value;for most normally-running companies publishing stock A,company value is significantly positively related with synthetic short-term profit at the 0.01 level,profit measure provides about 18% explanatory capability to company value.