Sun X.M.,Nankai University |
Zhang J.J.,East China Institute of China
Advanced Materials Research | Year: 2014
In 1934, Grahamd and Dodd gave a precise formulation between investor and speculator, as follow: “ a investment operation is one which ,upon thorough analysis promises safety of principle and an adequate return. Operations, not meeting these requirements are speculative”. Since then, a lot of scholars have employed financial information in predicting abnormal returns successfully, among them, Ou and Penman (1989) Through conducting financial statement information in some models, to predicting abnormal returns in Chinese stock market, we can examined whether its usefulness in Chinese Manufacturing Companies and found that it was impossible to predict stock performance in the Chinese market which was proved useful in other stock market. © (2014) Trans Tech Publications, Switzerland.