The Research Of Consolidated Statements Of Listed Companies With Shares

With the trend of development of enterprise groups in China and the needs of accountingregulatory of a growing number of listed companies to prepare consolidated financial statements,consolidated financial statements has become an important source of information for decision-making.The China Securities Regulatory Commission requires listed companies to report consolidatedfinancial statements and parent company statements, the implementation of the "dual disclosure regime,the basic idea is that the two statements could reflect a more comprehensive enterprise condition.Domestic scholar’s view of the consolidated financial statements are not uniform, some believe that thelow reliability of the consolidated financial statements, can not achieve the objectives of the ’fiduciaryduty’, but some believe that the consolidated financial statements offset by internal unrealized gain orloss fully reflect the business conditions, then compared with the parent company statements of theconsolidated financial statements, to provide shareholders with what incremental information, its howthe company’s stock price, as well as how to improve this situation, this problem will be solved.The paper use the basic accounting model is Ohlson (1995) and the sample is from the year of2007-2010and the Shenzhen and Shanghai listed companies to be chose, concluded consolidated andparent company statements, including asset information and the information of profits and cash flowinformation. The regression analysis, correlation analysis and empirical testing were made by SPSS16.0software.Overall opinion, the consolidated financial statements compared with the parent report informationwith the company’s share price does not have a stronger correlation. However, the results of the separateinformation are that the shareholders more value to profit information of the consolidated financialreport, such as net profit and core profit and the investment income of consolidated financial statementprovide the shareholders a different information with parent company statements. Also if the number ofthe combined investment income is bigger, the stock price is lower; The shareholders of the parentcompany statements of asset information is more important, but as time goes by, the consolidatedstatements of asset information are gradually subject to the attention of investors; cash flow statementinformation on the shareholders’ investment decisions very stable.Based on the above analysis, the paper provide recommendations from shareholders and listedcompanies regulators three perspectives to increase the usefulness of consolidated financial statements.