Study On Positive Accounting Theory And The Issues Of China's Capital Market

Our country's accounting principles are progressively developing along with the development of capital market. At the beginning of 1990s, the foundations of stock exchange in shanghai and Shenzhen draws back the prelude to the construction and development of capital market. The basic accounting principles are formulated and promulgated by the Ministry of Finance in 1992. Along with the continuous extension of capital market scale as well as the appearance of new economic business, the former accounting principles have already not been able to meet the new requirements, so from 1997, detailed accounting principles were being promulgated and put into effects in succession. Now the accounting principles are still under the construction.The rise of the positive accounting theory in our country ushers in a new angle of view for the application of our country's accounting principles for capital market. Firstly, the specifications of capital market demand a prompt guidance from the positive accounting research. Not only does the capital market development need urgently to conduct the positive research about the relations between accounting information and capital market but also creates the conditions for gradual positive accounting research. Secondly, the formulation and implement of accounting theory demand a prompt positive research of the business accounting choices. The promulgation of Accounting Principles and the foundation of accounting theoretical system with distinctive Chinese feature have provided broad fields for the positive accounting research.Scanning the American positive accounting research, we can know it has mainly gone through two stages. At the first stage, a particular research of the relations between accounting and capital markets was conducted. The discussion subject focused on the roles of accounting information in capital markets. But at this stage, no explanation and forecast could be made for accounting actual practice At the second stage, the positive research of accounting choice was stressed and the explanations was tried to made for why enterprise chose a given specific accounting process and method under the circumstances of having some choices instead of not choosing other processes and methods which could be chosen as well. The accounting choice run through the formulations and implements of accountingprinciples from beginning to end and the accounting choices involve the profits of all kinds of groups, but the positive accounting theory can help people understand the accounting choice action of all kinds of profit groups and improve the guiding roles of accounting theory in practice.On the base of a thorough analysis of the influences of the positive accounting theory upon our country's capital markets, with the application of relevant theories, in accordance with the specific problems existing in our country's capital market, from the angle of the positive accounting, the article puts forward a basic train of thought about how to compose our country's accounting principles in the future and, moreover, the article performs a further research as for such important aspects as the relations between accounting information and capital market, the influences of information dissymmetry upon capital market as well as the game-type choice between formulation of accounting principles in the course of accounting information control and accounting choice of companies coming into the market.There exists a close relation between accounting information and the effective operation of capital market (here mainly means stock market). On one hand, the accounting information is the base of the effective operation of capital market. On the other hand, the effective operation of capital market sets a demand for accounting information on such aspects as quality, quantity and the form of expression. The article starts with the pertinence of accounting information and stock price, contrasts the different roles that historical cost and fair value play on verifying accounting information contents...