THE EFFECT OF STOCK TURNOVER RATE ON THE VALUE CORRELATION OF ACCOUNTING DATA: COMPARATIVE EVIDENCE FROM CHINA A-SHARES AND THAI STOCK MARKET
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Abstract
The main purpose of this study is to find out the differences between China A-shares and the Thai stock market in terms of the influence of stock turnover of the stock market on the value correlation of accounting data, and to provide certain reference for more and more Chinese investors who buy and sell shares in the stock market of Thailand. In this research, the corporate accounting data of Chinese A-shares mainboard-listed companies and the Thai stock market from 2007 to 2016 was adopted. Based on Ohlson residual income model, a comparative study was performed to find out how the turnover rate
in China and Thailand affect the value correlation of accounting data. The research shows that, there are different trends in the two countries in terms of reflection of the listed company’s stock turnover on the
accounting data. The higher the turnover rate of Chinese listed companies, the lower the correlation between accounting data and stock prices; while the higher turnover rate of Thai listed companies, the
higher the correlation between accounting data and stock prices. In the final part, we use the goodness of fit R2 to verify the influence trend of turnover rate on the explanatory power of accounting data on stock price in the two countries.
Article Details
Chinese Journal of Social Science and Management Editorial Division
The Office of Research and Development, Panyapiwat Institute of Management
85/1 Moo 2, Chaengwattana Rd., Bang Talat, Pakkred, Nonthaburi 11120, Thailand
Tel. 02 855 01048 E-mail: cjssm@pim.ac.th
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