An Empirical Study On Fair Value Measurement And Earnings Management Of Listed Companies

With the gradual development of market economy, the economic system has been improved, the quality of the information requirements of the financial community is also rising. Following the 2007 implementation of the new accounting standards in 2014, accounting standards and carried out a radical reform, formally revised five, three new corporate accounting standards, issued a guideline to explain, and modify the "Enterprise Accounting Standard-basic Standard "in the statement of the fair value. This round of reform in the biggest bright spot is that announced the "Enterprise Accounting Standards No.39-measured at fair value."Earlier, China’s enterprises accounting standards system in the relevant accounting rules regarding fair value is dispersed in the "Real Estate Investment", "Impairment of Assets", "Business Combinations", "Financial Instruments Recognition and Measurement" and many other accounting standards, at that time, due to the economic development of China’s market is not perfect, therefore, the fair value of investment property has not been widely used in the market.2014 reform, the fair value as a separate accounting standards proposed to further clarify the meaning of the application of fair value measurement. The use of fair value, whether in a more objective and fair value of investment property reflects the condition of the assets, and whether the earnings management of listed relevant, in view of this, the paper listed company earnings management range for the study, depth and fair value enterprise operational accruals and significant correlation.The paper, based on the research of many scholars, the first of the fair value measurement of earnings management theory and the theory are discussed to explain the application of China’s listed companies to fair value. In addition, analysis of real estate investment of the status quo, as well as current and effective real estate value assessment methods and their applications. In this paper, empirical research, Modified Jones model, by 2010-2014, during the five-year study of 179 samples of data analysis, the fair value of investment property changes, earnings per share and earnings and whether continuous profitability as explanatory variables and operational accruals regression analysis, model checking by subsequent measurement mode and earnings management and whether there is a correlation significant. The study found: a listed company’s earnings per share and operational accruals were positively correlated. The proportion of independent directors, the proportion of shareholding controlling party, annual audit opinion, corporate assets and liabilities and the amount of assets and operational accruals no significant correlation. Investment property at fair value and the rate of change in operational accruals was a significant positive correlation. The study also found that continuous profitability and operational accruals showed a significant negative correlation. Profitable business with increased profits of earnings management tendencies. Therefore, we believe that the fair value of the criteria to some extent reflect a fair and objective asset value of the enterprise, improve the quality of accounting information, but the change in fair value of investment property and operability significantly related accrued profit, cannot effectively curb earnings management.This paper argues for earnings management of listed companies through investment property measured at fair value, on the one hand, through improving the market mechanism to assess and enhance the quality of accounting information, standardize information disclosure, promote enterprises to standardize management, strengthening of external oversight, with the market mechanism Specification.On the other hand, from the enterprise to enhance the accountancy professional level, reform of the current enterprise performance appraisal system and manager remuneration, appointment system. In addition, the existing listed companies listed on the SFC allotment, suspension and other regulations to make reforms, establish a detailed set of index system, to avoid the singularity index of leaving the management authorities profit manipulation.