Research On The Rationality Of Appraisal Results Of Public Companies

After more than20years’ development, Appraisal has been increasingly paid highly attention by more and more people. It has been used in the corporate restructuring, securities investment, financial regulation, real estate transaction, property tax, judicial testimony, credit and other fields. As an independent specialized marketing intermediary service agency, Appraisal plays an important role in boosting the economic development, regulating the capital operation, promoting the opening of the market as well as maintaining the economic orders. The rationality of appraisal results is the beginning and the ending of appraisal industry, which decides the vitality and credibility of this industry. This paper systematically gives a research on appraisal results from different participants of the appraising process for the first time, and gives the concept and measure standards of the rationality of appraisal results, and also researches for the factors which may affect the results, analyses the quality control system and finally gives the suggestions to promote the rationality of appraisal results. The aim of this suggestions is to reduce the error and fraudulence of the controlling shareholders, the appraising agencies and the CPV, as well as the report’s users.This paper is divided into seven chapters. The first one is the introduction which summarizes the total writing clues,such as the researching background, researching purposes and the significance of the topic, related concepts, researching clues and the structure of the content, researching methods, the innovation of the whole article and so on. The rationality of appraisal results belongs to the scope of the study of valuation accuracy,which means a new stage from paying attention to results measurement to paying attention to the appraising process. Therefore, the second chapter tries to introduce the achievements from both home and abroad, for instance, the background of valuation accuracy, the definition and nature of valuation accuracy, the accuracy research paying attention to results measurement, the accuracy research paying attention to the process analysis, and other factors that may influence the result of appraisal. This chapter will also find out the research tendency in this field. The third chapter includes the related theoretical basis about appraisal. The main content of this part is the theories of value and meanings of value in appraisal field, the type of value, appraisal methods, the description of special events and other fundamental concepts. All of this concepts are prepared for the further researching.The result of appraisal is difficult to be measured therefore,the rational process will lead to a rational result. The fourth chapter will give a research on the factors that influence the rationality of appraisal results of public companies from the following aspects, such as the working environment of appraisal industry, the clients, the CPV, the report’s users and so on. The specific contents are as follows:(1) working environments and the rationality of appraisal results, which are intended to study from the effection caused by economic environments, legal environments, information environments, credibility environments and international environments;(2) clients and the rationality of appraisal results, which are elaborated from an analysis of possibility of the impact of clients on appraisal process, the relationship of related party transactions of public company and the rationality of appraisal results, an empirical research on public company’s related appraisal and transfer of benefits, an empirical research on the controlling shareholders transaction pricing and large shareholder expropriation;(3) appraisers and the rationality of appraisal results, which are studied from the appraiser’s professional competence and professional ethics. Professional competence contains a lot, the most importance in the practice is the following points:judgment of value type, choice of appraisal methods, implementation of appraisal procedures as well as disclosure of appraisal reports.This section uses some typical cases for the above aspects; the ethics part focuses on the status of the appraisers’ professional ethics in our country and game analysis of lack of professional ethics;(4) appraisal report’s users and the rationality of appraisal results, which are intended to study two basic problems:Firstly, the user of appraisal reports is limited; Secondly, there are differences in the understanding of appraisal results and trading price. This part uses case study, nonparametric tests and regression analysis. The main content of the fifth chapter is the analysis of quality control system of appraisal process. From this part, we can find out the external regulatory approach and the weakness of external supervision as well as the links and key of internal quality control of appraisal agency from the control of appraisal process aspect. All of this are prepared for promoting the rationality of appraisal results of public companies. Based on the above analysis of the content, the sixth chapter provides some suggestions from the macro level, the meso level and the micro level. The last chapter is the research conclusion, the limitations of the research and the content that worth to be researched in the future.