Market Reaction Of Investment Property With Fair Value Measurement

With the development of Chinese economy, China published new accounting standards on Feb.15th,2006, and take effect in the coming year. After4years of real practice of new accounting standards we have got much achievement. We still have gap with international standards in fair value practice, we should be realistic to the status of usage of fair value and the effect.Based on the situation, the dissertation first summarized the analysis achievement in the fair value and investment property. Then it clarified related concept, theories and also related standards. Finally the context sampled the accounting data which have investment property and also measured in fair value, and analyze the market reflect.The article received the following conclusions. The unexpected earnings have significant positive correlation with the excess returns. The unexpected earnings deducting investment property part have significant positive correlation with the excess returns, but the unexpected earnings of investment property part have significant negative correlation with the excess returns. The ERC of the investment property’ unexpected earnings is lower than the ERC of other unexpected earnings, but not significant. Based on the result we could conclude that the investors could identify the temporary gain of investment property, and the market is effective in a way. This thesis has1chart,14tables and52references.