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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Data-driven Analysis of the Quality of Accounting Information in China’s Market and the Stability of Financial Markets

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DOI: 10.25236/iceesr.2024.040

Author(s)

Ruyi Wang

Corresponding Author

Ruyi Wang

Abstract

With the rapid development and complexity of China’s financial market, the quality of accounting information is particularly important for the stability and healthy operation of the market. This study aims to explore the relationship between the quality of accounting information in China’s market and the stability of the financial market in different years through data-driven analysis methods. Firstly, this study reviewed relevant theoretical and empirical research, clarifying measurement indicators for accounting information quality and evaluation criteria for financial market stability. Secondly, data-driven methods such as regression analysis were used to empirically test the correlation between the two based on the actual collected model dataset. Research has found that high-quality accounting information has a certain positive impact on maintaining the stability of financial markets. Specifically, accounting information with high transparency and accuracy helps to reduce information asymmetry in the market, reduce investor uncertainty, and thus promote the stability of financial markets. Based on the research results, this article proposes policy recommendations to improve the quality of accounting information and optimize the regulatory mechanism of the financial market, aiming to provide reference for the stable development of China’s financial market.

Keywords

Accounting information quality, Financial market stability, Data-driven analysis, Information transparency, Market Regulation