The Influences Of The Internal Control On The Value Relevance Of Fair Value Hierarch

The formulation of accounting standards based on the decision-making usefulness has become a consensus,and the fair value.measurement method is in line with the concept of decision-making usefulness.In 2014,the Ministry of Finance issued the "Enterprise Accounting Standards No.39-Fair Value Measurement"(hereinafter referred to as "the fair value measurement standard"),which standardized the fair value measurement method and the disclosure of hierarchical information,and promoted the implementation of fair value measurement.In order to test whether the use of fair value achieves the usefulness of decision-making expected when the standard is released,this paper studies the value relevance of disclosure of fair value hierarchy information based on the fair value measurement standard published in 2014.The selection of fair value valuation models and parameters requires professional judgment and has certain subjectivity,which makes it possible for management to measure earnings at fair value for its own interests.Good internal control can standardize the selection of fair value valuation models and parameters,and form effective internal supervision of the accounting estimation process.Effective internal control can suppress the earnings management behavior in the fair value measurement process,improve the reliability of fair value information,and thus enhance the relevance of fair value information.In view of this,in order to test whether the internal control system has achieved the expected results,this paper will analyze the impact of internal control factors on the fair value correlation between theoretical analysis and empirical testing.This paper takes China's non-financial A-share listed companies in 2014-2017 as a sample and uses the price model for empirical analysis.The empirical results show that from a holistic perspective,there is a significant positive correlation between fair value net assets and stock prices,and fair value information is more valuable than non-fair value information;from all levels,first and second There is a significant positive correlation between the three levels of fair value net assets and the stock price,and the correlation of the first level fair value is significantly higher than the third level fair value,and the second and third level fair value net assets have no correlation.Significant differences.The results of internal control on the impact of fair value correlation show that the internal control quality can significantly improve the overall and first-level fair value correlation,but the impact on the second and third-level fair value correlation is not significant.Based on the empirical research,this paper puts forward the following suggestions:the standard setters need to refine the disclosure norms of fair value level information;the relevant departments strengthen the supervision of fair value measurement information disclosure;the listed companies improve the internal control system,and the relevant departments add Great supervision of internal control information disclosure;improve the professional skills and professional ethics of accountants.The innovation of this paper is that it analyzes the fair value correlation problem from the perspective of internal control,and provides a new perspective for the study of the influence factors of fair value correlation and internal control.