Fair Value Of The Earnings Management Of Listed Companies

As the development of economy, the historical cost measurement can not meet domestic report users'needs for information. Under this situation, the New accounting standards of our country have been put into effect since Jan.1.2007. The new accounting standards make a large modulation on measurement attributes rather than to stress historical cost as the basic measurement attributes, and adopt fair value and current value as measurement attributes'in fields like financial instruments, investment property, non common control business combination, debt restructuring, currency transactions and so on. the significant change of those new items has brought large effect to the capital market of our country. It is reported that on one side, fair value produces relativity of financial statement, one the other side it increases the working space of enterprise on earnings.The new standards have also taken significant influence to Chinese capital market and earning management of China. From the day when it was issued, it was supposed to take the duty to restrict earning management activity. But under the current market economy from China, the accountant system is not developing maturely. The fair value in new accounting standard tends to be the tool by accountant subject to control the benefit. On one side, fair value complies with the requirements of times, reflects the real value of enterprise exactly, increases the relativity of accounting report; on the other side, wide adoption of fair value inevitably provide good conditions for earning managements, and increase the enterprise's space to control earnings.The article makes an analysis on the influence of new accounting standard to earning management level. First it explains the basic theory of fair value and earning management. Second, it makes an analysis on the influence of new accounting standard to earning management level from tow points. Last, on the result of the modified cross-section Jones model, this article investigates the changes of earnings management of listed companies in 06-09 during the implementation of new accounting standards, and takes it as the proof of changes of earnings management. The result shows that the new accounting standards can effectively reduce earnings management of listed companies, and make the financial reports more reliable. At the last part of this article, it also provides reasonable suggestions on how to use fair value reasonably on the restriction of earning management activities on the analysis for theory and empirical study result.