Research On The Value Relevance Of Accounting Information From The Perspective Of Resource Allocation Strategy

The usefulness of accounting information has always been the focus of capital market research.Since the 1990 s,the decision usefulness of accounting information has been seriously challenged in the new economy,which is mainly from industry to service industry and information technology.On the one hand,because the existing accounting can not reflect the changes of the company's business model,information technology makes the information availability increasingly improved;on the other hand,more importantly,the existing value relevance research is still from the accounting itself,from the analysis of the number to the number,and does not explore the essence behind the impact of accounting numbers.Based on this,this paper takes burgstahler and Dichev(1997)option theory,strategic management theory and financial statement strategic theory as the theoretical basis,based on the perspective of resource allocation strategy,takes earnings sustainability as the breakthrough of research,and takes A-share non-financial listed companies in Shanghai and Shenzhen as samples,respectively,from the short-term and long-term perspectives to test the impact of resource allocation strategy on the value relevance of accounting information.The results show that: first,the persistence of earnings of the operating leading company is significantly stronger than that of the investment leading company;after further distinguishing the composition of earnings,the persistence of core profits of the operating leading company is significantly stronger than that of the investment leading company,but the persistence of investment income is significantly weaker than that of the investment leading company.The results show that resource allocation strategy has a significant impact on the way of profit generation,and then on earnings sustainability.Second,the resource allocation strategy can significantly affect the earnings announcement response.The research finds that: from the perspective of net profit,compared with the investment led company,the value relevance of the operating leading company is stronger;from the perspective of profit composition,the value relevance of the core profit is the strongest in the operating leading company,and the value relevance of the investment income is the strongest in the investment led company.This result shows that the resource allocation strategy significantly affects the value relevance of profit and profit structure.Third,the resource allocation strategy can significantly affect the valuation effect of accounting information.The research finds that: there is no difference between the relative valuation effect of accounting earnings and equity face value in the operating leading companies and investment leading companies,that is,the valuation effect of accounting earnings is higher than equity face value;but the absolute valuation effect of accounting earnings and equity face value exists under the two resource allocation strategies The significant difference is that the valuation effect of accounting earnings of the leading company is stronger than that of the leading company,while the valuation effect of equity face value of the leading company is stronger than that of the leading company.This result fully shows that the resource allocation strategy will change the valuation weight given by the investors to the balance sheet and the income statement,that is,the investment decision-making mode made by the investors in the use of accounting information needs to fully rely on the resource allocation strategy information.The innovation of this paper: first,it finds that the connotation behind accounting information is enterprise strategy,which is the root of the difference in the value relevance of accounting information.Its basic logic is: resource allocation strategy determines asset structure,asset structure determines the generation mode of profit,so there are different profit components,different profit components directly lead to the difference of profit sustainability,the difference of profit sustainability leads to the difference of earnings value relevance,which further leads to the difference of valuation effect between earnings and equity face value;Secondly,the research based on the strategic perspective of resource allocation finds new evidence for the influencing factors of accounting information value relevance,and further expands the literature of accounting information value relevance.The significance of this study: First,it provides a new perspective for investors to understand the earnings information of enterprises more accurately-we should combine the resource allocation strategy to understand the significance of current profits and its components to the future development prospects and values of enterprises;Second,a hint to financial analysts and investors is that the valuation method focusing on price to book multiple is more suitable for investment led companies,while the valuation method focusing on price to earnings multiple is more suitable for operation led companies.That is to say,for the investment oriented company,the face value of the company's equity(the basis of the enterprise)should be considered more,and for the operation oriented company,the earnings information(the face of the enterprise)should be considered more;Third,there are some implications for the standard setting departments.Because the specific strategy of an enterprise is an important factor that affects the characteristics of accounting information,the standard making department can encourage companies to disclose more comprehensive strategic information,so as to help investors to understand and analyze the financial statements of an enterprise more accurately,carry out valuation analysis on an enterprise more effectively and make correct decisions.