Correlation between market performance and accounting fundamental : empirical study on China stock market

Abstract

The current trend of accounting-finance research is characterized by a return to the examination of the linkages between financial statements and security valuation. In this paper, we follow this path of research methodology to test the correlation between the stock market performance ratio and five categories of accounting ratios as well as the state ownership percentage for the period of 1994-1997 for all listed "A" share stocks in China.