...Shaojun Fan; Juan Chen; Hong Han Purpose The authors expand the connotation of the research on the accounting information quality characteristics, provide empirical evidence for the factors of consistency and also help to deepen further their understanding of the economic consequences of ownership...

..., Graham and King (2000) find that prices at the year‐end, in general, provide the highest correlation between market and accounting numbers. Chen et al. (2001) find accounting information is value relevant in China despite the market being relatively young and with inadequate reporting...

... performance. Given such trends, the purpose of this paper is to review the theoretical background of the residual income model and discuss results of empirical studies that use it. Design/methodology/approach The study seeks an understanding of how published accounting information relates to share prices...