The Influence Of Internal Control Information On Value Relevance Of Fair Value Measurement

With the development of information technology,the Internet has increasingly become the forerunner of innovation driven development.Information technology development has also become an important part of national development,and has promoted the development of various industries at the same time.The financial industry has great potential in the application of information technology.The combination of internal control and information technology can effectively solve the problems in internal control operation,such as high cost,low efficiency and high failure rate.The high risk characteristics of the financial industry have made it great demand for the internal control information,and the application of the financial industry to the fair value is also in the front end of the whole industry,both of which face the principal-agent problem,effects of internal control information on the value relevance of fair value measurement also has theoretical and practical significance.From the framework of COSO,this paper thinks that the information of internal control will improve the predictive value and the feedback value of the fair value information.The paper based on financial industry listed firms with the disclosure of fair value from 2010 to 2016,by using panel data and fix-effects regression models,quantified the importance degree of the enterprise's internal control information.The factor analysis method is used to calculate the ranking of the comprehensive index of the enterprise internal control information and set up the corresponding virtual variables.The paper analyzed the influence of the financial industry's industry characteristics and the internal control information on the fair value hierarchical measurement value relevance,and finally drew the following conclusion:1,the banking and insurance industry as the sample,found that the assets and liabilities of the fair value of the whole has significant value relevance,but the securities industry and other industries as the samples found no significant correlation;2,the banking and insurance industry as the sample,found that enterprises attach importance to internal control information,significantly enhanced the value relevance of assets on level 1 & 3,and the enhancement effect on level 1 is significantly greater than level 1;enhance the value relevance of fair value of liability on level 1&2,;enhance the value relevance of fair value accounting.Contribution of the article includes: 1,To address the shortcomings of previous scholars' research in the research of financial industry samples,classifying the financial industry into two categories according to its industry characteristics;2,At present,literature research on internal control information is mostly focused on normative or case study,the article supplements the deficiency of the empirical literature and explores the quantitative method of the internal control information;3,The research on the adjustment variables of the value relevance of the fair value measurement has been expanded to provide some ideas for the future research.