The Research Of The Value Relevance Of Fair Value

With the rapid development of economy and the coming of information age, the ifnancialstatements are becoming more and more decision usefulness oriented. The rapid development ofifnancial instruments and ifnancial derivatives, the improving price discovery function of the capitalmarket, and merger and recombination becoming more and more common，etc, all of these aredriving the development of fair value measurement.In the new "Accounting Standards for Business Enterprises” of our country, fair valuemeasurements are reapplied. For the fact that the implement of fair value measurements is closelyrelated to local economic environments and law basis, it is meaningful to research whether fairvalue measurements are ift for our country. The greatest advantage of fair value measurements isthat they can provide more relevant and timely information for users, so value relevance researchhas became the key ifeld of empirical study on fair value measurements, so is the case for thispaper.As to the details of this paper’s research, in the Chapter One, the research background isreviewed and the framework and signiifcance of this paper is introduced; the Chapter Two is mainlyabout literature review on fair value; in the Chapter Three，this paper gives out a summary of fairvalue theory, makes an analysis of the motivation and current condition of fair value measurementapplication in our country; in the Chapter Four, this paper puts out its hypotheses and conducts itsempirical study? based on A-Share Companies; in the Chapter Five, the robust tests for the empiricalresult are conducted; in the Chapter six，this paper make an analysis of the empirical result, andpoints out the defects of the research; in the last Chapter, this paper gives a summary of the paper,and puts forward some suggestions at last.The empirical research result can be summarized in the following two aspects: ifrst, the valuerelevance of proift and loss from fair value changes and that of net fair value changes ofavailable-for sale ifnancial assets are different and the last is higher; second，fair vale measurementhas different inlfuence for different companies, and accordingly the value relevance of fair valuechanges for different companies are different, and the relationship of the two are negative..