Research On The Value-Relevance In Accounting Information Of Fair Value Measurement

Since the 80s of the 20th century, with the appearance of a large number of financial derivatives, accounting information quality started to require continuous improvements. Historical cost measurement becomes the possible to cause the accounting information lack of relevance and timeliness to the community. The fair value accounting information are concerned because of its potentially high degree of relevance, boosted the use of financial derivatives, ranging from the progressive extension of the traditional assets and liabilities. However, accounting theory and practice of fair value are two completely different situations. Theorists generally believed that the fair value of information will greatly enhance the relevance of financial information to reflect the true value of assets and liabilities, and thus can help to prevent and reduce risk. And practitioners believed that fair value accounting is an extreme departure from the current accounting model, not only the lack of reliability, and also will lead to enormous fluctuations in earnings, it may lead to short-sighted decision. In response, scholars from various countries specified the empirical research towards a way of extensive and in-depth research.In our case, due to the accounting standards has long upheld the historical cost, fair value on adopting practices in the case of data are difficult to obtain, and therefore the fair value of the research norms are mostly empirical studies. In February 2006, the Ministry of Finance issued "Accounting Standards", to form characteristics of enterprise accounting standards system, and to achieve identical feature with International Financial Reporting Standards. The biggest change of the new guidelines is the introduction of fair value measurement, and the 17 specific criteria are widely used in varying degrees. Promulgation of new guidelines for our scholars which had carried out the value relevance of fair value to empirical study had provided a rare and a more extensive research opportunity.Based on this, these research scholars from home and abroad stared from the results, using the normal research and empirical research methods, took 300 listed companies as the sample from Shanghai and Shenzhen, to make a empirical test for the fair value accounting information relevant. The result is that the introduction of fair value, making accounting information on stock prices fluctuations occurred in the joint power of large effect, Adj R2 reduced from 0.510 in 2006, to 0.408 in 2007, to 0.484 in 2008 to return to rise. The empirical results show that the introduction of fair value and not enhanced by the value relevance of accounting information, but the reason that stock incremental information over accounting earnings have improved significantly on the net assets of the joint power. Finally, the empirical conclusions of this paper and related analysis on China's accounting standards are trying to make some policy recommendations in the application of fair value measurement.