An Empirical Analysis Of Accounting Information Contents Based On New Accounting Standards

Accounting information is a kind of information which reflects the financial status and result of management in a corporation in terms of monetary measurement. It appears in various financial forms indicating comprehensive situation including financial status, cash flow and management results in the process of a company's operation. With the development of our socialist market economy, it plays a more and more important role. In macro economy, correct and comprehensive accounting information provides concrete data which helps to propel our socialist market economy to develop in a healthy and stable manner, and to facilitate policy makers on decisions on economic policies such regulations and deregulations. In micro economy, accounting information is important for decision making for related interest groups such as investors, debtors and general public.In 15 Feb 2006, Chinese Treasury Department promulgated the new accounting standards, regulating that "it should prevail in corporations listed on the stock market, and conformations of other companies are encouraged". New concept of providing helpful accounting information for investors and the general public is iterated and new attributes of replacement costing"," net realizable value"and"fair value"that have impact on corporation accounting information are introduced in the newly promulgated accounting standard.Corporation management is willing to release their accounting information, with an aim for loans and sustainable operation. At the same time however, asymmetry of information held by the management and investors makes the management unwilling to reveal correct accounting information. Practically, there are no research done on the investors' view on the accounting information, on how they asses the accounting information and reach decisions on the capital market, under the co-influence of the contradictory psychology of the management on releasing accounting information and newly promulgated accounting standards. The article focuses on how the investors asses the accounting information under the new accounting standard and draws a conclusion.Corporation is vagueness about to state the true accounting information or not ,in fact ,the investors and public understand the situation also. Therefore , they often suspect the accounting information that if it is true.The new accounting standards had been used for more than one year till now , it is also a question that how to estimate the accounting information contents. This article try to resolve the question by using Event Study and Efficient Market Hypothesis, and will give the correlative conclusion.After a comprehensive statistical analysis, this article achieved several conclusions as the follows:1. If investors show insipid response to the accounting surplus information of listed companies that actual accounting surplus is higher than expected accounting surplus and non-normal return on the results can not be significantly bigger than zero, it shows such listed companies' accounting surplus does not have enough information content.2. If investors show apparent response to the accounting surplus information of listed companies that actual accounting surplus is lower than expected accounting surplus since the date information is published on and non-normal return on the results is significantly less than zero, it shows such listed companies' accounting surplus have enough information content.3. The investors and public have a poor response to the accounting information stated by corporations which used the "fair value"in their accounting measurement.This article analyzed the accounting information contents by Event Study and Efficient Market Hypothesis after the new account standards released for more than a year, and we got several conclusion. We expect that this article may give the investors and public some help.