The Influence Analysis Of The Fair Value Information Disclosure For The Listed Companies

In 2007, with the full application of the new accounting standards in listed companies in China, fair value accounting was introduced into financial reports of the listed companies formally. And the issue of information disclosure become a hot topic of academic research, In this force, this paper will use the 2007-2009 financial industry data which from Shanghai and Shenzhen Stock Exchange A share listed financial industry companies as sample. And we will choose the method of analysis industry and case depth of the overall. As the basis of fair value disclosure of data and information disclosure norms, we will discuss when the use of fair value in the financial report beginning, the information disclosure problems of listed financial companies and the impact of it.For this research questions in the article, organization as follows:PartⅠ: Introduction This section describes the background and motivation of this article, purpose and meaning of the main content, research methods, research process and this innovation points.PartⅡ: A Literature Review This Part collates the international research on the Economic Consequences Theory which is the theory of fair value information in this article. First, we applied the fair value of nearly 20 years abroad, the development of its application guidelines are summarized ,then we summarize the existence of the Economic Consequences which was confirmed by a large number empirical data and theoretical analysis by the scholars. Secondly, we summarize domestic scholars'study in the fair value. Mainly we analyzed from three aspects, focusing on the fair value of the economic consequences of the scholars research results. Finally, we did a summary sort. After a literature summary analysis I determine this Paper's research center. I will choose this data from the financial industry as the sample of my multi-sample case study. And the Paper will analyze the fair value of the information disclosure, and the impact for the financial industry.PartⅢ: This Paper based on the Economic Consequences Theory, all data from the Shanghai and Shenzhen Stock Exchange A share listed Financial industry listed companies will be the study sample. We will discuss the fair value information disclosure's impact for the financial industry from three aspects. Firstly, the impact of the fair value measurement to the financial industry's equity issues. Secondly, the problems and the impact of the use of fair value measurement brought to financial assets classification on the financial industry. Finally, the impact and the problem of the information disclosure format to the financial industry.PartⅣ: Selecting the data from two listed companies of the securities industry and banks, we will do further research. We will study the fair value of the information disclosure of listed companies and the emerging issues deeply.PartⅤ: Through this research, the paper concluded as follows:Through analysis of the industry as a whole, and repeatedly confirmed cases, (1) we find that due to the economic consequences of accounting measurement method , there is a clear preferences for the financial industry executives in the use of fair value measurement, generally making a profit increase of the reporting period in which the choice. Based on the general expectations of the capital market in 2007, securities industry executives more inclined to classify a lot of equity investments as trading financial assets, and the banking executives tend to hold bonds investment into Available for sale financial assets.(2) We find that for the financial industry's assets with fair value disclosure standard criteria for many companies has higher quality than the disclosure requirements of specifications. From the areas of signal transmission theory, the higher specification disclosure with no doubt passed on to investors its business in good condition, but information disclosure of the investment income in 2008, the number of securities companies did not in accordance with the guidelines of the regulatory requirements for disclosure, people's attention on the bad news is always great than the good news, trying to hide something can be said that income had to make investors doubt its profitability. So government regulatory agencies should strengthen supervision of accounting information disclosure, at least, the listed companies should disclose information in accordance with the minimum standards.(3) From the industry analysis, the authors found that from 2007-2009, for the impact of the financial crisis, the assets at fair value earnings volatility is more obvious, and in the financial risk management which lines in the listed financial industry companies, there is not form uniform standards of the risk information disclosure about the trading financial assets and financial assets available for sale, but only a few listed banks assets at fair value on the risk status was disclosed. From the case analysis, Bank of Nanjing provides investors with more detailed information about the risk disclosure. Detailed disclosure of the risk situation make more benefit to the investors making more accurate judgments about the expected return on the investment companies.