The Effect Of Risk Measurement Technology Disclosure On The Decision Usefulness Of Fair Value Change Information

Risk measurement is an important part of fair value measurement.Fair value estimation needs to use risk measurement technology and its results frequently.From the"Basel ? " to the ? Basel ?:Finalizing post-crisis reforms " which was enacted in 2017,the Basel committee has been committed to improvement of risk measurement technology.On the contrary,accounting standards has not carried out in-depth research to risk measurement and its impact on fair value measurement.In terms of risk measurement,accounting practice still needs to draw lessons from the mature experience of financial supervision.With the continuous development of risk measurement technology,more risk measurement technology will be applied to the fair value measurement.Based on this background,this paper uses the data of China listed Banks from 2009 to 2017 to study the impact of risk measurement technology's information disclosure on the value relevance of three types of fair value changes(NIGL,OCIGL,DISCGL),and to distinguish the relation between risk quantification and fair value estimation of financial instruments.The results could provide theoretical guidance for investors to make better use of risk measurement technology's information disclosure in financial reports when making decisions.At the same time,this paper calls on the accounting standard making institutions to pay attention to the information disclosure of financial instruments' risk quantification and further standardize the information disclosure of risk measurement technology of banks.In the first place,this paper uses the return model to test the value relevance of three types of fair value changes.Then,it refers to the practice in the study of GauriBhata and StephenG.Ryan(2015),and measures the information disclosure of risk measurement technology based on the actual situation of China's banking industry.Finally,this paper adds the information disclosure of risk measurement technology variable and its interaction with three kinds of fair value changes into the return model,further study the impact of risk measurement technology information disclosure on the value relevance of fair value changes.The results are as follows:First,the fair value changes included in other comprehensive income have value relevance,but it is not stable.However,the fair value changes included in current profits and losses and disclosed in the notes of the financial statements do not have value relevance.Second,the information disclosure of market risk measurement technology more complete,investors will better recognize the reliability of fair value changes that are included in other comprehensive income,and the value relevance of fair value changes that are included in other comprehensive income will become stronger.In addition,compared with the years with low market risks,in the years with high market risks,the information disclosure of market risk measurement technology has a stronger impact on the value relevance of fair value changes.Third,information disclosure of credit risk measurement technology does not strengthen the value relevance of fair value changes disclosed in the notes to financial statements.However,in years with high credit risks,the information disclosure of credit risk measurement technology significantly strengthens the value relevance of the fair value changes disclosed in the notes to financial statements.