Cost stickiness, earnings forecast accuracy, and the informativeness of stock prices about future earnings: evidence from China

Abstract This paper uses the data from Chinese capital market to study relationship between cost stickiness, earnings forecast accuracy and stock price information content. The empirical results show that: (1) Cost stickiness significantly affects response coefficient of prices. Lower improves ability current returns reflect future earnings, which is manifested in higher (FERC). (2) reduces non-state-owned enterprises, but does not reduce state-owned enterprises. It can be seen that investors have different attitudes towards listed companies with property rights process investment decision-making. (3) increases prices synchronicity decreases number company-specific reflected Further analysis shows accuracy, partial intermediary mechanism for improve FERC synchronicity. only enriches relevant literature coefficient, also an important factor affecting efficiency market.