Correlation Research On Fair Value Hierarchy Disclosure And Accounting Information Risk

Under the environment of international convergence of accounting,the Ministry of Finance issued the "Accounting Standard for Business Enterprises No.39-Fair Value Measurement" in January 2014,which modified the definition of fair value in the basic guidelines released in 2006.In the form of guidelines,CAS.39 explicitly requires companies to measure and disclosure fair value of assets or liabilities in hierarchical levels.In this context,the study of fair value in our application for further improvement and rational use of fair value measurement guidelines in practice has important theoretical and practical significance.As the sustainable development of capital market and economic business innovation,users of financial reports concerning timeliness and relevance of accounting information put forward higher request,to meet them to make the right investment decisions.The advantages of fair value,which can reflect a deal with its real value,timely provide relevant information,make it widely used in the financial report.While the reliability problems of the information from fair value measurement are also the focus of attention.Accounting information risk is the uncertainty that investors in the use of accounting information faced,which refers to the possibility of investors decision-making related information of low quality.As the different reliability of the input value used in the three levels of fair value in the valuation process is different,making the fair value measurement results divided into three levels.So when the situation of the information asymmetry exists,do investors face different information risks in the use of different levels of fair value information?The accounting information quality of listed companies at the same time is affected by the function of information environment internal and external.Does the information environment have an impact on information risk among three levels?Contents of this paper include six aspects.The first part includes the introduction.This section presents the research background,significance,research ideas,methods and innovations.The second part includes literature review.According to the thinking of writing this article,this part arranges and summarizes classical literatures concerned.The third part includes theoretical analysis and research hypothesis.This section defines the related concept containing fair value accounting information risk,basic theory.Then the section puts forward assumptions in this thesis.The fourth part includes study design.This section describes the measurement of key variables.On this basis,the thesis designs the appropriate model for the three assumptions of this article.At last,it illuminates the process of selecting samples prepared for the test.The fifth part includes empirical result.Samples of this thesis come from Chinese financial industry,time of observations distribute from 2010 to 2015.The thesis uses adjusted equity beta to measure the information risk,to test different risks between the three levels.On this basis,the paper chooses the company's internal governance structure and security analyst tracking number as the substitution variable of corporate internal and external information environment,to test if the enterprise information environment have influence on different level of fair value information risk.The sixth part includes conclusions and policy recommendations.The research conclusions are as follows:(1)The information risk of the three levels of fair value measurements increases monotonously.(2)Good enterprise internal information environment can improve the information risk of the fair value,and the governance effect of the three levels of information risk is increasing.The most significant effect is the governance on the third level of asset.(3)External information environment of high quality can reduce the overall information risk in the assets measured by fair value.Further research in this thesis finds that the information risk gaps between level 3 and other levels of samples in a poor information environment is higher than the gaps of samples in a good information environment.The above conclusion is consistent with the empirical results.In this paper,the problems of the application of fair value measurement put forward some suggestions.First,standard setting departments should improve the guidelines for fair value measurement and its application guidelines ulteriorly.Second,corporations should improve the disclosure of fair value information in aspects of quality and quantity ulteriorly.Third,the listed company should strengthen internal oversight of corporate governance on the quality of accounting information.Fourth,the government should foster the development of financial intermediary organs to improve the effectiveness and efficiency of the information supplied.