The Study On Influential Factors Of Fair Value Preference Of Chinese Listed Companies

With the rapid economic development of our society, more and more attention has been taken to the policy-making relevance of financial information. Comparing with the traditional historical costs measurement, fair value measurement has showed its merit. However, because of the financial crisis of 2008, fair value had been pushed to the summit of debate. A lot of scholars consider that it is possible for enterprises to make use of fair value to control profit and then it may lead to distortion of the accounting information. Which influence the option of fair value, and will it lead to distortion of accounting information of Chinese enterprise?On the basis of Preference Theory, we introduce the concept of Fair Value Preference and the index of Fair Value Preference. By considering the characters of Fair Value Preference and financial information disclosure of listed companies in China, we perfect the index of Fair Value Preference with adding in the fair value changing which records in the owner's equity in hope of reflecting the Fair Value Preference of companies more comprehensively. In the part of positive research, given the current situation of China, we analyzed the factors afflicting Fair Value Preference of Chinese listed companies. And then by using Logistic model and linear recession model, we conclude that the external factors of characters of industry, the economic region and internal factors of corporate governance and financial condition are both affect the Fair Value Preference of company. At the last part of this essay, the author has made some suggestion with the hope of providing some help to different people.