Influence Of Accounting Methods Chooseing In Busness Combination To The Investors To Measure The Value Of Enterprises

With the development of our country market economy, the investment environment hasincreasingly improved. In order to seek better development,many enterprises through themerger to achieve enterprise expansion and the growing of the enterprise, Which causeenterprise merger accounting problems.In the domestic and foreign research, there are mainly two kinds of business combinationaccounting treatment method, namely with the pooling of method and the purchase methodThis paper using of empirical way to test the different financial data coming from differentaccounting methods would affect investors to judge the value of company. The results showthat the stock price of the company which using pooling method in enterprise merger is lack ofvalue relevance with the company’s financial index. however, the stock price of the companywhich using purchase method in enterprise merger had more value relevance with thecompany’s financial index. Therefore, we need to carry on pooling method on certain conditions atpresent.waiting the capital market development to a certain advanced level and then using accountingstandards and international convergence of accounting standards, make Chinese andinternational accounting standards convergence.