Positive Research On The Effect Of The Comparability Of Accounting Standards To Investors Decision

Since 1990s, under the background of global economic integration, our country set out to build socialism. As a commercial language, accounting also began to reform to adapt to this economic environment. Our accounting standards referred to the international practice, in order to realize internationally comparable and at the same time enhance the domestic comparable degree. From the form of accounting standards, we can see that Chinese accounting standards got great achievements in comparability, especially the implement of the new "Accounting System for Business Enterprises" which began from 2007, not only basically has realized the Comparability with international accounting standards but also enhanced the Comparability of domestic accounting standards.But the comparability of accounting standards in form is not enough, we pay more attention to the comparable degree of specific accounting standards in practice. As companies disclosed the choice of accounting method in the notes to financial statements this helps to improve the comparability of accounting information in financial report, and this also provides a direct comparability measurement of accounting standards in enterprise practice. At the same time, the choice of accounting methods is an important accounting information disclosure. whether it has value relevance worth our further inspection. This article chooses positive research to verify the above two aspects. First of all, we make reference to the Gower index, put forward by zhi-yong hu (2008), a measurement of comparability of accounting standards in practice. Through the annual and industrial descriptive statistical analysis, we want to see if the comparability of accounting standards improved between the year before and after the implement of the new "Accounting System for Business Enterprises". Then, in reference to the Ohlson model, we make value correlation test. We choose the stock price to measure the investors decision-making, to study the relation between investors decision-making and comparability of accounting standards, and choose variables measured by Gower index multiply certain accounting information as explanatory variables. We want to see if the comparability of accounting standards is an important basis for investors decision-making and can provide added comparable accounting information.In general, the conclusions are as follows:(1)The new "Accounting System for Business Enterprises" helps improved the comparability of accounting standards in enterprises. Our country’s accounting standards get effective implementation. But the comparability in different industry still needs improvement. (2)The comparability of accounting standards is value relevant. In the two stage, the AdjR2 of each variable has soared, both the comparability of accounting standards and earnings per share and net assets per share has significant relevance to the price of stock. Except that, the variable measured by Gower index multiply earnings per share and net assets per share also make contribution to investors decision.Innovation of this article are as follows:On the one hand, we measure the comparability of accounting standards from enterprise level. On the other hand, we make further study about the value of this information to investors. Shortcomings mainly is that whether this complicated index of comparability of accounting standard can be adapted to other large and medium-sized enterprises of non-listed still need further study.