Study On Relevance Of Fair Value And Accounting Earnings Quality

With the development of economy,historical cost accounting method cannot fulfill the requirement of accounting information users.It is no doubt that such a transfer has exerted a significant influence on international financial accounting theory and practice.This essay is based on the data from A-share listed companies of Shenzhen and Shanghai Stock Exchange between 2004 and 2007, tries to investigate whether application of fair-value measurement has impaired accounting information quality of Chinese listed companies;Secondly,the paper examines whether fair value information disclosed by listed companies is value-relevant to investors in Chinese capital market;In the last part,this paper provdes some advices on the fair-value accounting principle.