【Mingli lecture 2022, Issue 20】
Time: April 13 (Wednesday) 2:30-4:00 pm
Venue: Tencent Conference 672635634
Speaker: Lecturer Cui Chenyu, University of International Business and Economics
Speaker Profile:
Cui Chenyu, Lecturer of Accounting Department of International Business School, University of International Business and Economics, Ph.D., School of Economics and Management, Tsinghua University. Research interests are the intersection of accounting information, stock market and behavioral finance. Research results have been published in Journal of Banking and Finance, Pacific-Basin Finance Journal, "Management World", "Nankai Management Review", "Financial Research", "Accounting Research" and other high-level journals at home and abroad. Served as an anonymous reviewer for academic journals such as Management World and Management Review.
Introduction to the report:
Securities Regulatory Commission mandates that A-share listed companies disclose their net profit after deducting non-recurring gains and losses (hereinafter referred to as net profit after non-recurring profit and loss). It can better reflect the profitability of listed companies. However, subsequent empirical tests consistently show that investors show a significant irrational tendency to abandon the superior and use the inferior when using financial indicators: they focus on the reported net profit rather than the higher-quality net profit after deduction. On the day of the earnings announcement, we found that stock prices fluctuated with changes in reported net profit rather than net profit after deduction, and investors mainly traded stocks based on reported net profit rather than net profit after deduction. Further research shows that investors are prone to have wrong expectations about the future profitability of listed companies when the difference between the reported net profit and the net profit after deduction is large, and use the behavioral bias of investors to abandon the good and use the bad to design trading strategies. , you can get a monthly excess return of about 1%.
(Organizer: Department of Accounting, Research and Academic Exchange Center)
