Research On The Impact Of Fair Value Measurement On Earnings Volatility Of Listed Companies

Since the recognition of fair value measurement by academic circles in 1930 s,fair value has been moving forward in controversy,especially when the financial crisis swept the world in 2008,fair value has been pointed out by thousands of people because of the cycle effect.But because it is more adaptable to the complex environment of global economic integration,it becomes the main guest of the 21 st century.The main problem of fair value has been changed from "whether to apply" to "how to improve"."how should it be better used by investors"...in terms of the refinement of the guidelines,Our country has not stopped exploring since 2006,The fair value measurement has been added directly to the Accounting Standards for Enterprises.In January 2014,the Ministry of Finance promulgated the Accounting Standards for Enterprises No.39-Fair value Measurement(hereinafter referred to as "CAS39A",the theoretical definition of rigor and the normative standards are self-evident.Accounting earnings is an important indicator of capital market in resource integration and resource reallocation efficiency,is a symbol of appreciation of the value of a firm specific form and profitability,earnings information quality has been the company's shareholders,managers,creditors and other stakeholders to direct financial statements and even potential investors in the capital market concerned.And action is an important indicator to measure the aftermath of surplus earnings quality,has attracted much attention.With the fair value measurement standards announced and widely used in practice,so the use of fair value measurement will cause the company's earnings volatility? But the economic consequences of earnings volatility,profit aftermath Internal control is helpful to regulate the behavior of fair value measurement and evaluation,improve earnings quality and strengthen corporate governance.It is worth studying whether earnings volatility can improve or not.Under the background of this research,this paper makes an empirical analysis on the impact of earnings fluctuation in the fair value measurement model on the basis of reading a lot of literature.In this paper,the non-financial listed companies of Shanghai and Shenzhen A-shares from 2014-2016 are selected as the sample companies to explore the impact of the application of fair value measurement attributes on earnings volatility,and then to add internal control.This paper probes into how internal control quality adjusts earnings fluctuation and whether it can play a role in reducing accrual earnings fluctuation.Finally,it studies the effect of improving internal control quality on earnings fluctuation from the perspective of earnings change.In this paper,The conclusions are as follows:(1)the use of fair value measurement can significantly enhance the volatility of earnings.(2)The Internal control quality has negative correlation with earnings volatility,that is,high quality internal control quality can reduce earnings volatility.(3)Improve the internal control of the enterprise can reduce the earnings volatility of the enterprise.