The Empirial Research On Procyclicality Of Fair Value Measurement In Banking

China’s accounting standards and international accounting standards are into convergence nowadays.To recognize the pro-cyclical effects of fair value measurement, and the extent of its mechanism, and its transmission mechanism within the banking system, coupled with the conduct adjustments arising, there is positive practical significance. Firstly, to sort out the existing fair value accounting problems and the transmission mechanism of pro-cyclical effect, then conduct the empirical analysis and test, mainly focus on China’s listed banks in the system.In this paper, the perspective is the transmission of information. Pro-cyclical effects of fair value accounting is a comprehensive concept, its essence is the true value of assets and liabilities of deviation. In the banking system, the asset level, income level, ability to grow and share price fluctuates, in turn reflects on the regulatory capital requirements, risk monitoring mechanism, loan provision system, salary incentive mechanisms, so there exists pro-cyclical effect. Pro-cyclical effects of fair value measurement mode is the result of the banking system itself pro-cyclical interaction.After the overall empirical test, the study found: After using fair value measurement model, the value of the correlation has been greatly improved; and changes in the operating profit of the banking sector will be accompanied by changes in the fair value generated; fair value mode change will exacerbate banking income, mainly reflects on ROE and change in gains and losses in the same direction; and after the introduction of fair value measurement model, the stock will fluctuate accordingly. Fair value measurement model has a stronger correlation with the value of the real relevant accounting information.Accordingly the value information is an effective way to relieve the market of asymmetric. Financial prudential supervision is built on transparency, greater disclosure of information relating to the basis, so one way to deal with the financial crisis and solve pro-cyclical effect is to ask market players to provide true, accurate and complete financial information to enhance the transparency of the industry and thus contribute to the export of macroeconomic policy against fluctuations in the economic cycle.