Study On The Earnings Management Based On The Fair Value

New Accounting Standards for Business Enterprises introduced the fair value into it's system again in 2006.whereas the fact that Chinese current market environment is not mature enough,this make people concerns about the abuse of fair value.And more scholars were magnetized the research that the use of the fair value may raise the impact of earnings management in listed companies.But after taking an overview of existing research,we can find that these studies are mostly limited to theoretical analysis,and relatively empirical studies are few.This paper combined the theoretical analysis with the empirical studies to study above issues.Firstly,we defined the research method on the basis of an overview of existing research.Secondly the paper described in detail the scope of the application and the impact of the fair value,and analyzed the possibility that the fair value became the means of earnings management.Then we proposed the research hypotheses based on such theoretical research,and created an new model based on the Jones model.Finally the paper used SPSS tools to verify the research hypothesis.The paper came to a conclusion that the possibility that the fair value became a mean of earnings management was remote.In allusion to the conclusion of the study,the paper gave some suggestions about how to guard against the abuse of fair value to earnings management and improve environment of the use of the fair value.