An Empirical Research On Value-relevance Of Financial Accounting Standard Changing In China

Because the capital market in china is in the stage of development, the relative financial accounting standard is experiencing the process of uninterrupted perfecting, and many scholars, including standard setters, are expecting to know the effects of the executing of financial accounting standard. Hence, the purpose of this paper is to use the method of value relevance to judge whether the goal that the standard setters expected has been achieved. In order to achieve the above purpose, this paper makes use of the relative researches for reference made by accounting scholars both domestic and abroad, and fully analyzes the main idea of the research of value relevance from the point of theoretics. Then, based on the summarization and evaluation of the fruits and shortage other scholars made, this paper brings forward the research hypotheses. On the base of fully understanding of various research models of value relevance, this paper chooses the Feltham-Ohlson model and the Balance Sheet model as the basic models and adjusts the two models to test the value relevance of accounting data of listed A share corporations in China. The research result shows: (1) in the period from 1996 to 2001 the value relevance of accounting information in China is falling with the implementation and changing of every financial accounting standard; (2) when testing listed corporations suffering loss the Feltham-Ohlson model is invalid; (3) compared with 2000, the accounting data of 2001 isn't more conservative but more aggressive; and (4) this paper can't judge whether the book value of corporation assets after computing the asset reduction required by "Accounting Regulation of Corporations" is closer to that before computing, and it needs further researching.