Research On Decision-usefulness Of Accounting Information

Decision usefulness of accounting information refers to the usefulness of the information associated with the release of a new accounting or disclosure of data sets, and the capital market responds significantly to it, indicating that it transmit a new useful information to the market, that is, the information is useful on decision-making. Ministry of Finance Promulgated the basic norms of corporate accounting and 38 specific accounting standards on February 15, 2006, which not only indicates that China and the international convergence of accounting standards has been made during the initial results, but also means that China's new round of accounting officially launched the reform. In this paper, analysis has been developed and China on the basis that a certain degree of investor protection in the situation with the impact of the context of economic activity, the decision-usefulness of accounting information in Chinese capital market will be improved. This paper attempts to reveal the implementation results of the new accounting standards from the view of investor.Based on this clue, the sample consists of the relevant data of Chinese listed companies in the manufacturing sector in both year 2006 and 2007.The paper uses factor analysis and regression model on three aspects:(1)whether the Value relevance of accounting information exists; (2)what influence the new accounting standards has on the value relevance of accounting information of listed companies; (3) Do investors distinguish between the different growth of listed companies when they use accounting information for investment decision-making? Empirical results are as follows: (1) The overall accounting information (accounting earnings and net assets) have a value of relevance in China's listed companies in 2006 and 2007; (2)The implementation of new accounting standards reduce the assets of listed companies'value relevance of listed companies and enhance the earnings'usefulness in investment decision-making; (3)After the implementation of guidelines for high-growth investors, listed companies are more concerned about their super-expected changes in profitability, accounting surplus'usefulness of decision-making being enhanced.