Empiricalanalysisabout Relevance Ofaccounting Information After Execution Of The Accounting Standard

The title is based on the announcement of the 2006 accounting standard for enterprises. In the history of account theory, every reform of accounting standard can bring changes to the quality of accounting information. The purpose of this title is to investigate and study whether the quality of accounting information is higher based on the announcement and execution of the 2006 accounting standard for enterprises, especially the value relevance is higher than that in old accounting standard.The capital market in china is of weak efficiency, but it still can react to the information just published. We can measure the reaction by the stock price volatility. So the public of information can influence the stock price in a way. The first chapter summarizes the background and purpose of research that if the relevance of accounting information is higher or not under the 2006 accounting standard. It's still meaningful to study this program that the 2006 accounting standard is executed for just three years. The second chapter is the literature review. Firstly, the article divides the foreign literature into information perspective and measurement perspective to explain, introduce the classic empirical literature about relevance in accounting history and new achievements about relevance on the international level. Secondly, article summarizes research achievements about relevance in now stock market of china. The third chapter is theoretical analysis. In the effective stock market, national finance reports published by the company are some of the information resources for the investors. They judge the accounting information and choose useful part to help to make investment decisions. These investment behavior will influence the stock price through the stock market. The 2006 accounting standard is better and has the higher measurement standards. The improvements of standard will influence the information quality on the positive side. So we get the conclusion that this reform on accounting standard will improve the relevance of accounting information. The forth chapter is empirical analysis. Article takes example by price model and market value price, takes the sample of accounting information of A-listed companies in the Shanghai market and Shenzhen market from 2003-2009, and make horizontal and vertical comparison, finally get the empirical analysis results. The fifth chapter makes the conclusion for the empirical analysis. The results turn out that the accounting information under 2006 accounting standard is of relevance, which is higher than before the standard reform. And article explains empirical analysis results on theory, some factors are the important reasons for improvement of accounting information, like improvements of standard, more requirement on information disclosure, improvements of executive environment for standard and so on. Finally, article analyzes some problems existing during the execution of standard, like some imperfect rules on standard, the hysteresis effect of standard, the problems made by low quality staff and so on, and makes some suggestions like continue perfecting the detail rules of standard, enhancing the power of market supervision, improving the quality of staff and investors, perfecting the internal control system, enhancing supervision for intermediary institutions and so on.This article proves that the execution of 2006 accounting standard can improve the quality of accounting information, provides new evidence for the study of relevance after the execution of 2006 accounting.