Research On The Influence Of The Principle Of Fair Value On The Performance Of Listed Companies With Cross-Shareholdings

As the ownership structure of contemporary companies becoming more and more complex, cross-shareholdings, the means of expansion and capital operation for the companies, happens in our economic life more and more frequently. Although it emerged late in China, its impact on the entire stock market can not be ignored. Especially, after the promulgation of the new accounting standard on February 15th, 2006, the studies on cross-shareholdings is of great significance.Based on the ideas above and large quantities of essays, the paper collects and collates the financial statements information of the A-share listed companies on Shanghai Stock Exchange, analyzes their basic information, the ownership structures, and financial status, and then selects the cross-shareholdings listed companies. Under the principle of fair value ,the paper finds that trading of financial assets and for the sale of financial assets are influenced in the most direct and explicit way. According to the accounting methods of the two items, the changes find expression respectively in the items of fair value of the profit and loss in the profit sheet and the profit and loss of financial assets to be sold in fair value in the shareholder's equity changes sheet. So the paper chooses two indices, EPS and ROE, and makes use of the comparison way of'be or not'in fair value in order to express the companies'performance. Because the fluctuate of the stock market of 2007 have a great influence on the relevant items in the financial report of People's Life Insurance Company of China (PLICC) , the paper finally employs this case to express the characteristics of the fair value in depth.