Research On Economic Consequences Of The Changes Of Combination Accounting Standards

The advancing of the Corporate Merger Accounting Standards became one of the bright spots in the new Accounting Standards. Before the new Enterprise Accounting Standards were promulgated (2006), the corresponding Corporate Merger Accounting Norms issued by the Ministry of Finance were"Combination Accounting Statements interim Provisions"(1995),"Accounting Treatment problems interim Provisions about Enterprise mergers"(1997). These Merger-related accounting norms prescribe enterprises should use the purchase method. Nevertheless, in enterprises convertible shares mergers, the pooling of interests method was the tacit approval of regulatory authorities. In these circumstances, this paper studies the economic consequences which were brought by the Corporate Merger Accounting Standards Promulgation.In this paper, the main contents are:Chapter 1: Introduction. This segment firstly introduces the subject significance and background which include the merger wave, better allocation of resources as well as international convergence. Next, this part advances the framework of this paper and pointes out the innovation and disadvantages.The second chapter studies the purchase method and the pooling of interests method, and points out the dispute between the two methods. And this part looks back the development course of the Corporate Merger Accounting Standards or the norms from both home and abroad perspective. Conclude that under the more and more intense merger wave circumstance, the pooling of interests method passed by the strictly limitation to the total abolition. While in our country, the pooling of interests method passed by the acquiescence to the strict limitation.The third chapter puts forward the economic consequence doctrine, and the mainly described the economic consequences theory of Accounting Principles. The essence of economic consequence of the Accounting Standards is that: due to accounting standards have the functions of defining the parties'rights and obligations, thus the standards have an impact on the parties'wealth and operational behavior, and then form social consequences. In the market economy environment, the reasons leading the Accounting Standards economic consequences are the market factor, the leases factor, and the political factor. The economic consequences result in the political tendency at the accounting standard setting. Chapter IV carries through the empirical research on the economic consequences which are brought by the changes of Corporate Merger Accounting Standards. This paper selects those companies which listed in the Shenzhen and Shanghai stock markets and had M & A transactions as samples. The sample companies will be divided into corporate merger under the same control and corporate merger not under the same control. The empirical study adopts two methods: cumulate abnormal return (CAR), and linear regression method. Under CAR method, firstly calculate the average abnormal return (AAR) and the cumulative abnormal return (CAR) with Excel software, and then pair samples, test matching sample mean with SPSS software. Under linear regression method, introduce three variables: the Unexpected Surplus, the changes of share net assets and the changes of share net assets caused by the implementation of new Corporate Merger Accounting Standards, then make Linear Regression with the three variables to the AAR. Finally, analyses the empirical research results. Come to the conclusion that the introduction of new Corporate Merger Accounting Standards has brought significant economic consequences and significant market reaction to China's securities market.Chapter V makes out a conclusion aiming at the whole study.