The Influence Of Fair Value Measurement To Earning Quality Of Listed Firms In China

In this paper, financial and insurance industry listed in China is selected as sample,the research data is from semi-annual and annual financial report of 2008-2010.The empirical test about the influence of fair value accounting to earning quality is executed through the Stata statistical software.The research is about the value relevance of fair value change to the stock price,to find whether fair value gains and losses can provide incremental information.This paper fist introduces the research background,significance and frame,then relevant literature domestic and abroad on fair value and earning quality is systematically reviewed and summarized.In the empirical research part, the paper constructs regression model, selects the samples and makes descriptive statistics, do regression analysis,then adds control variables to do expanded test.The final part is conclusion and recommendations.In this paper,the price model is used and the empirical test results are:(1)net income is more significantly relative to the stock price;(2) divide net income into the fair value aspect and non-fair value aspect,the former is in some degree relative to the price,but not very significantly,and less relative to the latter;(3)after adding control variables to the test model,the gains and losses of fair value change still provide incremental information to the price.