Empirical Research On Value Relevance Of Accounting Information

In 2006,Ministry of Finance enacted a basic accounting standards and 38 specific criteria.The promulgation and implementation of CAS2006 response to the requirements of the development of market economy and achieve with IFRS convergence. The CAS2006 emphasize on accounting information useful for decision-making, focus on improving the quality of accounting information to guide a reasonable cash flow, and promote efficient allocation of resources. It changes the traditional concept of profit centers to establish the core position of balance sheet, in order to reduce the space for manipulation of profits. It emphasis on accounting information should be true and fair, so it will be more relevant to investors. While the new guidelines aim to improve the value of the relevant accounting information, but the implementation of new guidelines caused some problems, especially fair value measure will increase the element of subjective judgments. In the developed market, it is more easily to confirm the fair value, but in the not sufficient market, how to confirm the fair value is a difficult issue. In particular, as an emerging market economy country, many assets market is not active, how reasonable the use of the concept of fair value to ensure the reliability of the application of fair value has become the key factor. Inappropriate use of fair value accounting information will reduce the value of relevance, from the promulgation and implementation of accounting standards in mind. In addition, to limit manipulation profit enterprises, the criteria provided for impairment of long-term assets are not allowed back; to expand the scope of the combined statements of any subsidiary of the parent company's control statements must be included in the scope of the merger, this rule change between related parties to avoid manipulation of the profits.One of the objectives of accounting stander is to improve the quality of accounting information, but whether the implementation of accounting standards is effective? What is the impaction on accounting information relevance? This paper choice the listed companies in Shanghai and Shenzhen stock markets as a sample, the establishment of the stock price and earnings per share, net assets per share of the regression model, in addition to the introduction of the size and capital structure variables regression model. All the samples from the regression model, the new guidelines after the implementation of accounting information and stock price to increase the relevance.