Study On Value-relevance Of Accounting Information From Perspective Of Heterogeneous Beliefs

Value relevance of accounting information is the product of empirical accounting theory related to the information content research.The theoretical premise that accounting information has an information content is to assume that capital market is fully effective or market participants are rational and their investment beliefs are homogeneous.On the basis of those above,our former scholars have done considerable research and verifications about the correlation between the various enterprise information and stock market prices.However,the reality of the capital market is not completely efficient market theory sense because of the ignorance of the heterogeneous beliefs—a important part missing in the process of the study on correlation between accounting information and stock market prices.From the efficient market hypothesis,this paper has combined with behavioral finance's questioning towards EMH,summarized the review of classical research of value-relevance of accounting information,discussed the possibility to introduce investor heterogeneous beliefs as a factor into the process,placed the research of value-relevance of accounting information under the perspective of the investor heterogeneous beliefs:-from the angle of the complexity of accounting information and the incomplete rational of investors' decision making,combined with the prospect theory of behavioral finance,analyzed investors' belief difference on accounting information and accounting methods transition from historical cost to fair value,pointed out that heterogeneity of investors' beliefs produced the understanding differences on accounting information,leading the gradually lost of the relevance of accounting information measured at historical cost and the rise of fair value.-analyzed the defect of classical value-relevance research and provided ways to improve: directly use the market value of equity securities as intrinsic value,directly test without the factors of heterogeneous beliefs.-reconstructed the logic of value-relevance of accounting information: In the closed-loop process(from the market to the market),the valuerelevance of accounting information from the perspective of heterogeneous beliefs took the improved model that use investor heterogeneous beliefs into consideration,explored investors' disagreement on accounting information so as to reducing false information,promoting correct belief,effecting and guiding GAAP's requirements on specific accounting information.This paper found that in the role of investor heterogeneous beliefs,significant differences exist between different annual value-relevance of China's A-share listed company's accounting information,both general and classified(balance sheet,income statement accounting information;historical cost,fair value accounting information).And the introduction of investor heterogeneous beliefs as alternative variables has significantly improved the explanatory power of the model,further evidence of the value relevance of accounting information should not put investor beliefs aside but only study the simple relationship between accounting information and stock prices.Finally,for empirical findings,this paper proposed three corresponding strategies: to reduce investors' different beliefs on accounting information,to improve the quality of accounting information and to improve the information environment.