Research On Earnings Volatility、the Value-Relevance And Fair Value Measure

In2014our country "accounting standards for enterprises no.39-fair value measurement of the promulgation " marks the implementation of the fair value status has improved. Since fair value introduced in2006, the rigor of theoretical definition, the standardization of the rules, the familiarity of practice application are all obtained the unceasing development and progress.The fair value of assets and liabilities based on competitive market prices, which is more value than the historical cost measurement.It is closer to market value, reflect the present status of the company’s assets and liabilities, and increase correlation of the information provided by the company’s financial statements. Can the use of fair value lead to the volatility of corporate earnings? tends to reduce the earnings quality of listed companies, Investors in capital market always evade earnings volatility. However, with the development and increasingly standardized of the fair value, can the fair value measurement improve earnings quality of listed companies? Moreover, can the improvement of earnings quality be identified by investors and influence their decisions?This research based on the existing research and using the empirical research method to study. the concrete content includes five chapters. The first chapter mainly introduces background, significance and context. After reviewing the literature, I would put forward innovation and deficiency of this article. the second chapter mainly analyze earnings volatility, the value relevance and the fair value measurement from three aspect:the contract theory, principal-agent theory and property rights theory. The third chapter mainly introduces the choice of sample, the design of the research model and the definition of the variables. The fourth chapter basically research empirically and test, the fifth chapter mainly puts forward the research conclusion and policy suggestions.Through the study,we found that the change of the market value of assets and liabilities can affect the income statement items change in the income statement, resulting in a net profits and losses of the fluctuations, lower earnings quality, more operational and financial risk. But with the standardize of the way of fair value gain and present, the perfection of market regulation, Management authorities use fair value for the company will provide a scientific basis for the value of assets and liabilities, constraints on the use of randomness, and ease the fair value of non-standard adverse impacts on the earnings volatility, With the advancement of the standardization of the fair value, earnings volatility is gradually reducing, the earnings quality is being improved, and the capital market investors trust of earnings quality of listed companies is further increasing, Earnings per share has more value relevance.