The Third Level Of Fair Value Measurement And The Quality Of Accounting Information

From the introduction of the modern accounting system in the fair value measurement in the 1970 s,although the development speed of the fair value measurement between the United States and China is different,the development process is strikingly similar.And the two country both have experienced disputes or repetitions of the abolition.The main reason of is that people have doubts about whether the introduction of fair value measurement will reduce the quality of accounting information,especially the third-level fair value measurement.In order to effectively use the third-level fair value measurement,ensure the reliability of accounting information and improve the correlation of accounting information,it is necessary to theoretically demonstrate the impact of the third-level fair value measurement on the reliability and relevance of accounting information.How is this impact generated? What are the main environmental factors that constrain this impact?Based on the above questions,this thesis manually sorts out the third-level fair value measurement information of A-share listed enterprises from 2014 to 2017 from Juchao Information Network.Other relevant data are obtained from Guotaian(CSMAR).The author did theoretical analysis and empirical test of the impact of the measurement using of the third level fair value,the impact of business outsourcing,the scope of application,the measurement methods and information disclosure on the reliability and relevance of accounting information.The specific research contents include:(1)Based on accounting measurement theory,principal-agent theory,transaction cost theory,asset valuation theory,etc.,the influence of the third-level fair value measurement on the reliability and relevance of accounting information is studied;(2)Based on the theory of comparative advantage,the theory of specialized division of labor,and the theory of market competition,this thesis studies the impact of the third level of fair value measurement outsourcing on the reliability and relevance of accounting information,and further empirically tests the regulatory effect of enterprises' size on the before-mentioned relationship;(3)Based on the theory of information asymmetry,accounting professional ethics,signal transmission,etc.,this thesis studies the relationship between the scope of the third level of fair value measurement on the reliability and relevance of accounting information,and further empirically tests the regulatory effect of enterprises' financialization on this relationship;(4)Based on the asset valuation theory,financial management theory and high-level echelon theory,this thesis studies the relationship between the third level fair value measurement method on the reliability and relevance of accounting information,and further empirically tests the adjustment effect of the CFO professional background on this relationship;(5)Based on signal transmission theory,information asymmetry theory,analyst tracking theory,etc.,the relationship between the third level of fair value information disclosure on the reliability and relevance of accounting information is studied.And the author further empirically test the regulating effect of analysts track on the relationship between the two.The study found that:(1)The third level of fair value measurement does not affect the reliability of accounting information.In the company who use the first and second levels of fair value measurement,the improvement of accounting information correlation is more significant when we increase the use of third level fair value measurement;(2)The third level of fair value measurement business outsourcing reduces the reliability of accounting information and improves the relevance of accounting information.In medium-sized enterprises,the above relationship is more significant;(3)The application scope deviation of the third level fair value measurement does not affect the reliability of accounting information.And when the application range of the third level of fair value measurement deviates from the industry average level,the accounting information is more relevant.At the same time,when the financial level of the enterprise matches the scope of the third level fair value measurement,the correlation of accounting information is higher;(4)The third level fair value measurement method selection does not affect the reliability of accounting information,and the correlation of accounting information of third level fair value measurement can be improved by using the market method and income method.It does not improve the relevance of accounting information when the third level fair value can be measured by the cost method.At the same time,CFO's accounting professional background can enhance the correlation of the third-level fair value accounting information when they use the income method to measure it;(5)The sufficiency of third-level fair value information disclosure does not affect the reliability of accounting information,but improves the correlation of accounting information,and is mainly quantified through third level fair value items,amount information,valuation techniques,unobservable input values,input value sources and the disclosure of regulatory information,etc.,thus improve the relevance of accounting information.At the same time,analysts' track of correlation of accounting information can enhance the disclosure of third level fair value information.This correlation is mainly improved by analysts' interpreting of third level fair value items and their amount information,unobservable input value' quantitative information and adjustment information etc.The research innovation and theoretical significance of this thesis are mainly as follows:(1)It demonstrate the basic relationship between the application of the third-level fair value measurement and the quality of accounting information,and enrich the research literature on the factors affecting the quality of accounting information.And the research provide empirical evidence to clarify the need and feasibility for the third level fair value measurement and provide the resolution of existing research related disputes;(2)According to the third level fair value information data collection,data processing and information generation and reporting link division,from the aspects of business outsourcing,application scope,measurement methods,information disclosure,etc.It determine the mechanism of how accounting information quality impact the third level of fair value measurement and provides a theoretical basis for the effective use of third level fair value measurement;(3)The author select the main internal and external environmental factors that affect the effective use of the third level fair value measurement,and thoroughly study the direction and mechanism of the effective use of these factors on the third level fair value measurement.And the research provides a theoretical basis for constructing an effective guarantee for the third level fair value measurement' effective use of external regulatory systems and internal safeguard mechanisms.Based on the research conclusions,this thesis puts forward relevant policy recommendations,which has the following practical significance:(1)It is beneficial for people to eliminate doubts about the effectiveness of the third level of fair value application and provide theoretical support for promoting the third level of fair value measurement.(2)It is beneficial for enterprises,social audit organizations and asset appraisal institutions to construct a linkage and cooperation mechanism that effectively uses the third-level fair value measurement.(3)It is beneficial for enterprises to reasonably determine the scope of third level fair value measurement according to the specific conditions of financialization and fully guarantee the quality of accounting information;(4)It is beneficial for enterprises to reasonably select the third level fair value measurement method and select CFO;(5)It is beneficial for enterprises to improve the normativeness,adequacy and completeness of third level fair value information disclosure and give full play to the role of analysts in tracking and reducing information asymmetry.