The Research On Market Reaction Of Voluntary Accounting Policy Changes In Chinese Listed Companies

With the continuous development of the empirical accounting theory in our country,the empirical study on voluntary accounting policy changes of listed company has been one of the focus.However,the study about market reaction of voluntary accounting policy changes is seldom involved,even less after implement of the Accounting Standard for Business Enterprises and the financial crisis.Accounting policies are selectively in our country,the enterprises can make changes to ensure more true and reliable accounting information.However,driven by interests,some of the listed company make unreasonable voluntary accounting policy changes to meet the their interests and needs under legal conditions,also lack of effective regulatory measures.Therefore,the empirical study about market reaction of voluntary accounting policy changes can change the behaviour of listed companies,at the same time,rich positive accounting theory in China.Based on the economic consequences theory,efficient market theory and the mechanical hypothesis and no effect hypothesis,event study method and the main indicators of market reaction are introduced detailed.Select Shanghai and Shenzhen A-share listed companies changed their voluntary accounting policy in 2009-2014,classified according to the results and benefits effect and specific financial motivation.Using event study method,by calculating the expected return of each sample companies get the abnormal return,then analyzing entire sample's market reaction,the influence of voluntary accounting policy changes to earnings performance,and the market reaction of voluntary accounting policy changes under specific financial motivation,then get following conclusion:(1)In the short term,the listed companies change voluntary accounting policy can bring certain excess returns,the impact on the company's share price significantly,but overall not yet caused serious harm to the market;(2)Profits inflated enterprises' market reaction is negative during the events,profits decreased are positive,indicating that the investor take scepticism about increase corporate profits by change voluntary accounting policy,but regard decrease corporate profits as good news;(3)The motivation of big bath,make up the deficits and refinancing behaviour bring significant excess return,however,the motivation of smooth and investment are not obvious,indicating the degree of market disruption is less than the big bath,make up the deficits and refinancing behaviour.Finally,aim at the empirical results of paper,to suppress enterprises' non-rational voluntary accounting policy changes,propose concrete measures and suggestions from the national level,enterprise level and the information users level,at last,points out the research limitations and prospects.