The Research On The Effect Of Fair Value Accounting On Corporation Investment Behavior

In 2006,China introduced the new accounting standards system which put forward the fair value measurement model by the moderate and prudent way.In 2014,the Accounting Standards for Business Enterprises No.39-Fair Value Measurement was promulgated.It shows that the fair value measurement model in China is improved.Fair value measurement is oriented by market and has great advantages in improving the quality of accounting information.Comparing with other measurements,the advantages that make it become the trend of future accounting reform and development.However,the fair value measurement also has many shortcomings.The "pro-cycllical effect" is one of them,which can exacerbate the extreme conditions of market and influence managers' irrational psychology.The shorting Leads to the inefficient investment behaviors of companies.Therefore,the paper analysises the impact of fair value measurement on the managers' irrational psychology,discusses the interation influence on enterprises investment behaviors and provides new method to improve the efficiently of investment behaviors.In the period of Chinese economic restructuring,providing new ideas for improving the irrational investment behavior of enterprises is necessary.The paper takes the investment behavior of enterprises as the research object,and selects the Shanghai and Shenzhen A-share listed companies which the profit and loss of the fair value change from 2007 to 2016 as the research sample.The paper obtains the results by the binomial logistic regression analysis,descriptive statistical analysis,Multiple linear regression and independent sample T test of empirical research methods.The research show three results.Firstly,managers more easier over-optimism when changing direction of fair value measurement is positive,while managers more easier over-pessimistic when changing direction of fair value measurement is negavite;At the same time,the degree of fair value changing has influence on the managers' irrational psychology.Secondly,when the changing of fair value increases net profits at a greater degree,the managers are prone to excessive optimism.The interaction of them will lead to the over-investment.when the changing of fair value incesases net profits at a worse degree,the managers are prone to excessive pessimistic.The interaction of them will lead to underinvestment.The lastly,the influence of fair value accounting to enterprise investment behavior exits difference at different market situation.With the fair value of the increase in profits,the enterprise is more prone to over-investment situation when the market is prosperous;with the fair value of the decrease in profits,companies are more prone to under-investment situation.when market conditions is recession.The innovation of the paper is mainly embodied in three aspects:Firstly,basing on the perspective of behavior financial theory analyses the impact of irrational psychology of managers to the enterprises investment behaviors;Secondly,by setting the indicators of managers irrational psychological,the paper quantitatively analysis the changes in fair value on the influence of the managers ' irrational psychological,and explore the interaction of them influence on enterprises investment behavior;Finally Comparising fair value's influence on enterprises investment behavior is differences on the different market environment.According to the above conclusion put forward suggestions Through perfecting the market mechanism,improving the management technology,strengthening information disclosure,strengthening the internal and external audit measures such as perfecting the fair value measurement Through the establishment of joint financial decision-making mechanism,vigorously develop institutional investors and strengthen the national level and the guiding measures to perfect enterprise financial behavior.