Research On The Value Relevance Of Accounting Information From The Heterogeneous Beliefs

The traditional research of value relevance is usually based on the premise of Efficient Market Hypothesis, at least assuming homogeneous beliefs, and on this basis, correspond with the firm value or the stock price with the value relevance of accounting information. Fair value information generates from the suspicion of Measurement Perspective toward the Efficient Market Hypothesis, however, the resarch and theoretical models of fair value information’s value relevance are still based on the assumption of efficient market.Inherent contradictions contained in the theory makes the researches of value relevance of fair value and historical cost information are hard to get the same conclusion,therefore triditional theory is also hard to play a key role for developing the guidelines.In every field of social science based on human behavior, the heterogeneous beliefs are penetrating and challenging the traditional framework of rational people with homogeneous beliefs hypothesis; but based on the paradigm of new classical economics traditional theory of value relevance is still under the framework of its triditional model. According to the domestic and foreign literature and media information which can be obtained from perspective of heterogeneous beliefs value relevance study of accounting information are rare; From the perspective of traditional accounting theory, applied research and standards set are on a "three kingdoms tripartite confrontation" pattern, can’t realize crossover and fusion of the theory and practice. Therefore, we think it’s necessary to re-examine the value relevance of accounting information from heterogeneous belief Angle, open up new research ideas, in order to promote the further development of the study.By considering the analysis of Noise Trade Ohlson Model theory, this paper argues that the investors belief heterogeneous premise, on the one hand,for accounting information different investors group have different valuation levels and ability, or investors opinions through accounting information are different,there were significant differences in the valuation process of performance for different system, different countries and different information environment background,which show significant differences for value relevance. On the other hand, not always efficient market appeared in two trends, firstly, when the market is Irrational Exuberance the bounded rational investors will become more overconfident, they often excessive magnify the fundamentals of other information, thereby reduce even ignoring the valuations role of accounting data; Secondly, Once the noise trading based on the information of the noise traders with time increase year by year, value relevance will show a declining trend.The paper firstly re-analyzes the theoretical basis of the value relevance of accouniting information,especially the value relevance of fair value information from the perspective of heterogeneous beliefs; Secondly, the paper anlalyzes why the tradional value relevance research can not be the basis for standard setting through the criticism and thinking toward them and clarify the relationship between the research of the value relevance and the scope of fair value application; At the same time, we further propose that the scope of fair value application of should be matched with the institutional environment; then the paper puts forward the ideas of the value relevance research through the theoretical analysis of value relevance based on heterogeneous beliefs; and based on this, we use the data from 2007 to 2009 after the implement of the new accounting guidelines,making an empirical test on the value relevance of accounting information; the results show that heterogeneous beliefs cause the differences of value relevance including fair value information, specially we find significant differences on the background of different information environment, different institutional environment and different periods.This paper aims to take heterogeneous beliefs as the breakthrough point on the whole, through theoretical analysis of Noise Trade Ohlson Model, puts forward the new idea of value relevance.Based on this, this paper empirically analyzes accounting data promulgated by new accounting standards, puts forward the corresponding policy recommendations.The paper firstly aims to clarify the correlation between the research of the value relevance and the scope of fair value application and find the causes of differences on the research of accounting information value relevance; then,through theoretical analyzes the paper makes an empirical test on the value relevance of accounting information including fair value information after the implement of the new accounting guidelines on the background of different information environment, different institutional environment and different periods and finds the significant differences,at last,proposes the corresponding policy recommendations according to the research conclusions.The research idea of this paper expands in turn based on progressive levels:the first level is the premise of this paper, the paper puts the historical changes and the theory evolution of the accounting information including fair value information value relevance research as a clue to propose the motives and value of this article and card the research status. The second level is the basic research, mainly analyzing inherent contradictions of the value relevance research, based on this, the paper makes theoretical analysis for the value relevance research based on heterogeneous beliefs. On the third level, we have an empirical test on the value relevance of accounting information under the background of different information environment, different institutional environment and different periods.Firstly, the paper raises the subject----"the value relevance of accounting information" from the perspective of the heterogeneity beliefs coming from behavioral finance, and further elaborates the research background and significance of this paper, based on this, propose the rasearch objectives and contents, the research technical line and the research methods. Then the paper recalls the development process of the accounting information including fair value information value relevance research; at the same time, comments the domestic and foreign value relevance research to summarize the problems and limitations, pointing out the direction of the paper.Secondly, on the basis of defining related concepts, we study the value relevance of the accounting information based on the heterogeneous beliefs in basic. On the one hand, we re-analyze the theoretical basis of the value relevance. From the perspective of heterogeneous beliefs, we re-examine the logical relationships between Information Perspective、Measurement Perspective、Efficient Market Hypothesis and Net Surplus Theory and other existing basal theories. Furthermore we point out the internal contradictions between the premise of Net Surplus Theory and fair value and its value relevance. On the other hand, based on the heterogeneous beliefs, we further make theoretical analysis for the value relevance of the accounting information. We also have criticism and thinking on the traditional value relevance research, and clear that the traditonal research cannot be used as the theoretical basis for application of fair value. Then the paper clarifies the relationship between value relevance research and application of fair value, further puts forward the philosophical orientation of fair value accounting. Combineing with the evolution of CAPM, we propose the Model of Ohlson which bases on the Noise Traders, and further raise the value relevance of accounting information research ideas by reverse thinking.Furthermore, the paper does an empirical test on the value relevance of accounting information under the background of different information environment, different institutional environment and different periods using the model based on theoretical analysis. The results show that A、H shares of the value relevances of accounting information have significant differences, and the fundamental reasons are not different capital markets, or different accounting standards system, but heterogeneous beliefs; we also concludes that the value relevance of the companies whose main invesots are the retails is significantly higher than the companies whose main invesots are the institutional investors, which shows the value relevances of accounting information in the different information environment are significantly different because of heterogeneous beliefs of the two groups. At last, we find that the value relevances of accounting information in different periods are significantly different, which shows that the information quality of Balance Concept increases year by year, but the information quality of Revenue and Cost Outlook decrease.Finally, on the basis of summarizing research conclusion, in combination with the system environment this paper puts forward policy Suggestions:improving the quality of accounting information, emphasizing the role of accounting information valuations, Improving capital market investor protection level, improving the system environment, Follow-up information asymmetry of listed companies, improving the asymmetric information environment, Continuing to invest based on fair value accounting education and training, valuations of deepening standards implementation, improving and enhancing the accounting information value relevance, trying to get the market become more effective up.The main innovations of this paper are as follows:Firstly, from the perspective of heterogeneous beliefs, this paper expands the research vision of value relevance of accounting information. Most of the traditional value correlation studies for the premise supposition, effective market requires investors must be at least homogeneous beliefs. In this paper, follow from heterogeneous belief perspective which are the ideas of the behavioral finance this paper have widened research areas and vision of value relevance. Secondly, this paper specifies the relationship between value relevance and fair value application scope. The traditional value relevance studies often hope that through the fair value relatively has incremental information content to the historical cost to provide empirical evidence for accounting standards in order to further improve the fair value application. But this approach does not get the strong support of the study conclusion. This article the profoundly analyze the theory basis of value relevance of fair value information, and the profound connotation of fair value, discusses the reasons why value relevance of standard setting cannot be used as the basis, and puts forward the application range of the fair value of should be guided by the doctrine of the mean thought in ancient China and strictly be matched with the institutional environment. Meanwhile, this paper further puts forward new perspective of value relevance research of accounting information from heterogeneous belief Angle. Thus we can clear relationship between the value relevance research and the application scope of fair value the.Thirdly, through the introduction of noise trader, this paper rethinks the Ohlson models. We deduce Ohlson Model again, which reappear basic assumptions of the model, in the process of building and its dividend discount model equivalent basic ideas. On this basis, the paper contrast noise trading model and dividend discount model, proposes and constructs the considered view of Noise Trade Ohlson Model from heterogeneous beliefs.Fourthly, from heterogeneous belief angle of view systematically integrates the perspective of three different types of value relevance studies in China, and using accounting data promulgated by new accounting standards empirically analyzes comparison of different types of value relevance. During the past decade, different institutional environment and different information environment, and different annual value relevance comparative study of the domestic and foreign literature, are academically "fragmented". This paper, from the perspective of heterogeneous beliefs consider Noise Trade Ohlson Model according to the theoretical analysis, systematically integrates the three kinds of literature, and using nearly three years of domestic data empirically analyzes different types of comparison of value relevance.However, owning to the limitation of ability, this paper is just a try. So there are definitely some limitations in the dissertation. For example, Because research object basically is accounting data promulgated by new accounting standards, this paper only has three years of research samples, so it is difficult to reflect variation tendency of the informations of balance sheet and income statement; be confined to the length of this paper, the paper puts forward the match between the application range of the fair value and system environment, and do not consider the relationship between fair value measurement method and the accounting conservatism; According to the reverse thinking of value relevance, the empirical analysis can only find differences which do not accord with conventional expected phenomenon, Still need further analysis through field research and experiment research to find the specific reasons of the difference and provid effective strategies of value relevance. As an exploration, I will further enrich and perfect this research in the future, through these superficial thinking, I also hope to become the blackboard for other newcomers based on this research.