A Study On Fair Value Measurement Behavior And Its Control

The study on fair value measurement behavior is complementary to fair value accounting and behavior accounting when both fields are in full swing. For one thing, it could make people recognize and control the phenomena of behavorial bias of fair value accounting information, for another thing, it can interpret and control fair value measurement behavior by using behavioral economics in order to increase information quality.According to the two kinds of fair value measurement attribute, fair value measurement behavior can be categorized as'choosing market price'and'evaluating present value'. That we analyzed fair value measurement behavior by using behavior economics was the innovation of this paper. Research findings showed that, (1) in the process of choosing market price, there may be three categories of behavior bias: heuristic bias before choosing, anchoring and adjustment in choosing and confirmation bias after choosing; (2) for present value measurement, this paper proposed prospected cash flow approach based on the drawback of expected cash flow approach, then we focused on the analysis of the exaggerated bias in the estimate of cash flow, the application of behavior asset pricing theory in the adjustment of risk and uncertainty, and the decision of discount rate should be free from the shackles of the traditional discount model, and consider the influence of Sign effect, Magnitude effect, Delay-speed up Asymmetry, as well as Improving Sequences appropriately.In addition, we attempted to analyze and asses fair value measurement behavior in a brand new thinking based on rule-based lens model, then considering the differenence between performanc index ra and 1, we proposed some relevant measures to control fair value measurement behavior from three aspects including enhancing environmental predictability, extending and expanding information set, and enhancing human control.