The Usefulness Of Accounting Information Became Weaker In The Issue Of Municipal Bond

It has been a long time to research the usefulness of accounting information, The designers of the system designers try to maximize the usefulness of accounting information,In order to help the investors to make the right decision. So many research have been proved the usefulness of the accounting information,The accounting information can provide the valuable information.But the research of accounting information mainly concentrated in the stock market,Deficient in the bond market, especially the study of municipal bond accounting information,but it has been formed such a conclusion that the accounting information correlation has been lost in the municipal Bond.The topic of this paper is "The usefulness of accounting information in the bond market", The starting point is "the lost of correlation of the accounting information in the municipal Bond".through the analysis of the environment of the bond issue market and the condition of the municipal Bond,Finally,we explain the lost of the correlation of accounting information in the municipal Bond from four aspects:One,because of the over debt,the ROE became the risk indicators from the earnings;Two,The inflated revenues and netincome, assault injection lead the doubt about the conditon of the issuer. There,The rating inflated phenomenon is more obvious in the municipal Bond, then further lead to the disappearance of the relevance of accounting information in the municipal bond. The result of this paper prove that the accounting information still be usefulness in the municipal bond.The research of the paper makes sense in reducing the social cost of financing and promoting the development of China bond market.