Research On The Value Of Accounting Standards From The Heterogeneous

The economic consequences of accounting standards mainly focus on the value relevance. accounting standards value relevance refers to the capital market value explanation ability of accounting information under the background of accounting standards. At present, accounting standards value studies were very rich,which used models that based on the efficient market hypothesis,such as the assets and liabilities model, revenue model and price model. But there is no consistent conclusion. These researchers thought the volatility value relevance because of the investors irrational behavior. AS the current accounting standards issued and implemented, the world is experiencing a financial tsunami. after the economic crisis, people began to question the market effectiveness.The beliefs of mainstream economics is being eroded and behavioral finance is rising. Scholars become focus on the investors heterogeneous beliefs. Scholars had made certain progress which explored asset pricing model, stock returns, surplus management and stock pricing based on the perspective of heterogeneous beliefs In the Financial world. But the value relevance of accounting standards studies are rarely based on the perspective of investors heterogeneous beliefs.So this article will be research investors heterogeneous beliefs influence on the value relevance of accounting standards through the combination of theoretical analysis and empirical analysis method.Firstly, This article theoretically analyze the three major theoretical basics of the heterogeneous beliefs and value relevance, which contain the efficient market hypothesis, behavioral finance and decision usefulness; Secondly, the paper expounds the relationship between accounting standards and the value relevance and define the value relevance of research which based on heterogeneous belief is that the accounting information disclosed by the accounting standards have the ability of explaining securities prices under the reliability. Thirdly, it systematically discussed that how will heterogeneous beliefs influence on the value relevance of accounting standards. Heterogeneous beliefs contain irrational expectations and noise trading. Finally, using the improved Ohlson and Ohlson model based on noise trading and adopting the date of Shanghai and Shenzhen A shares from 2003 to 2013, the regressions find that that the accounting standard value relevance raised and had obvious volatility. The graph of excess volatility proved that The most obvious manifestation of the irrational expectations and noise trading the value relevance, and concluded that the noise trading are negatively related and value correlation in general. The empirical analysis of value relevance found that after the current accounting standards implementation, investors changed belief and attached great importance to the Asset-liability view, but it had little substitution effect to the profit- loss view.Through theoretical and empirical analysis, we gave policy Suggestions of improving valuations investors irrational expectations and reducing the noise trading in order to improve the value relevance of accounting standards. Through puting the accounting standards which established mostly according with the combination of theory and practice 、strengthening internal control, and improving the quality of certified public accountants audit 、 regulating laws and regulations, strengthening the investors valuation to use accounting information,these measures will improve the ability of valuations investors irrational expectations; Through improving the reliability of accounting information, developing industry analysts,these measures reduced noise trading.Base on investors heterogeneous beliefs, the accounting value relevance Has the vital practical significance. We explored the effect between heterogeneous belief and value relevance in order to better promote the relevance of accounting information, and than better promote the effectiveness of the market.