A company’s financial statements have a effect on the stock price. Investors should look at the financial statements when making their investment decisions. The information in the financial statement should be compared with one’s expectations. If it is better or worse, it can push the stock price up or down. Also, investors often use financial ratios based on financial statements information to make decisions. The real impact might be a case study in empirical corporate finance. This is a good research topic.

Let's work through the issue carefully.  If you use the word information to mean something new, not just data, then the answer is likely to be yes.  New information reduces entropy, uncertainty, variability, volatility, and has value.  This may not be picked up as an Announcement Effect, in an event type study where spikes in price and volume are seen to indicate impact of the new disclosure.

Given the number of databases, eg Thomson Banker, Factiva, DataStream, which have consolidated and comparative data for which people subscribe there is prima facie evidence of value.

Are there studies?  No!  So it is a great question and does not necessarily require a market equilibrium study.  My guess is that if you did primary data research of security analysts they would say yes.  The challenge become one of turning this experiment into money value.  There are revealed preferences in terms of database purchases and you can devise a rather neat experiment using stated preference theory. 

Behavioural finance may just be the way to tackle this really, really interesting question.

Dear Habeeb Mohamed Nijam

Greetings,

I agree what Stuart M Locke  said .

Best Regards

the share price reflects the future cash flows. The financial statements reflect only the past. The financial statements may give clues about the future, but do not necessarily reflect the truth.

the question is explained well by Dr Locke. the information on financial statements has an impact on the price, even though not the only determinant. for example, Enron's price reached a peak just before its collapse as a result of its misstated financial statements. 

Previous value relevance studies did not separate their sample into consolidated financial statement and single company financial statement. They are selected because they are listed companies and their shares/stock are publicly traded. Maybe this is your opportunity to study and to compare between the relevance of consolidated financial statement and single company financial statement. 

Here you have some interesting links to consult:

- http://www.thehindubusinessline.com/portfolio/young-investor/the-importance-of-consolidated-statements/article2482407.ece

- http://www.ehow.com/about_5685728_importance-consolidated-financial-statements.html

And a must see paper:

- http://www.academia.edu/3471794/The_Reporting_Entity_and_Consolidated_Financial_Statements

Good luck!

 Tanks a lot for all your constructive answers and comments.  

Regards,

HM.Nijam