The Comparison Of Empirical Study Of Asset-liability View And Revenue-expense View

The asset-liability view (A/L View) and revenue-expense view (R/E View) are not only different theories for measuring profit and loss,but also different accounting conceptions to the establishment of accounting standards that bring different economic consequences.R/E View is the major conceptions which has been the leading formulated of Accounting Standards Concept.However,the implementation of new accounting standards which break this bondage,and use A/L View to recognition measurement and disclosures accounting Elements.The two concepts needed to compare with empirical studies to test the situation its operation in China's capital market,and provide material of empirical test for our country formulated of Accounting Standards.Through the comparative analysis of A/L View and R/E View can know that these is a greater difference between the two concepts in accounting objectives, accounting elements, accounting recognition and accounting measurement attributes etc. A/L View focus on decision-usefulness view, attention to the quality of assets and liabilities, fair value measurement attribute to use more. R/E View focus on the concept of fiduciary responsibility, attention to the measurement of income and expenses, historical cost measurement attributes to use more.Against the difference between of A/L View and R/E View at measurement attributes we can use it. This dissertation will study A/L View and R/E View in Empirical Comparison Method making use of 4 models based on Residual Income Valuation Model,with data obtained from China's listed companies in 2007-2008 after the implementation of the new Accounting Standards for Enterprises. Through descriptive statistics, correlation analysis and regression analysis, we will get the final outcome.The results show that: the stock price of China's listed companies is significantly correlated with the net assets and residual income which measured under the historical cost. While measured under the fair value, there is no significant correlation between the stock price of China's listed companies and the net assets plus residual income. There have correlation between the stock price and the net assets plus residual income, but the correlation is low than measured under the historical cost. The reason is probably that contains the fair value of net assets and residual income thereby reducing the relevance, but the results showed that little effect. Regression analysis of the results: whether under the historical cost measurement, or in the fair value, The regression coefficient residual income significantly higher than the net assets, which indicating that in the explanatory power of stock prices residual income areas is much higher than the net assets. Indicates that investors of China's capital market who attaches great importance to corporate earnings, while the investors not pay enough attention to quality of the assets of the company. And it shows that the investors pay attention to the residual income which measured under the historical cost is higher than the residual income which measured under fair value.