A Study On The Usefulness Of Consolidated Financial Statements And The Financial Statements Of Parent Companies

As the global economic integration and the internationalization of the capital market, more and more enterprise groups get a rapid development. As the acceleration of enterprise collectivization trend and the demand of the capital market regulation, the disclosure of the listed company financial statements become more and more important to the stakeholders who make decisions based on them. Currently, there are two kinds of financial statement disclosure system in the world: one kind is only revealed the consolidated financial statements, namely "single disclosure system";Another is disclose the consolidated financial statements and the parent company financial statements at the same time, namely "dual disclosure system", financial statement disclosure system in our country belongs to the "dual disclosure system". No matter what kind of disclosure system, the role of the consolidated financial statements has been widely recognized. For a long time, the decision usefulness of accounting information is the important content in the field of accounting research, and for the issue to explore, the most industry research scholars have been focused on the usefulness of the consolidated financial statements, for the decision usefulness of the financial statements of the parent individual are ignored. So this article will start from the background of the dual disclosure system in our country, analyzes and study the decision usefulness of consolidated financial statements and parent company financial statements as well as decision usefulness differences between two statements.This paper first reviews the domestic and foreign relevant accounting information and stock correlation research achievements as well as decision usefulness of financial statements, and then expounds the consolidation theory of financial statements, and the theoretical basis of decision usefulness of accounting information. Finally, on the basis of market value model we build extension model, examine the usefulness of a-share listed companies’ consolidated financial statements and parent company financial statementsin 2010-2014. Through theoretical analysis and empirical test, this paper verified the decision usefulness of the financial statements of the parent company, affirmedthe meaning of the accounting information from the parent company statements to investors; For the securities investment decisions, this paper verified the consolidated financial statements of decision usefulness is higher than the parent company financial statements, and the difference of them can provide incremental information to the investors on the basis of the consolidated financial statements. In this paper, the results support the dual disclosure of our country’s financial statements, believed that disclosure the parent company financial statements and the consolidated financial at the same time will have positive meaning to the right decisions for reports users.