The Study On The Market Reaction Of Fair Value Measurement In Finance

In recent years,fair value is a hot issue all over the world.Although the application of fair value in China is not smoothly,the Ministry of Finance issued a new set of accounting standards on February 15,2006,and would implement in public companies from January 1,2007,which involved one basic principles and 38 specific guidelines. The biggest highlight of the new accounting standards is the re-introduction of the fair value.What economic consequences will be after the re-introduction of the fair value?This is the main content of this paper.In this paper,the financial listed companies is the research object,which are affected by the fair value greatly.At first,we described the basis of the fair value theory ,based on the domestic and foreign research. Then, we studied the market reaction of the three events by the event study,which affected the financial Listed Companies greatly. Finally we Proposed the policy recommendations,the limitations of this study and further research.This paper obtained the following conclusions through the empirical analysis.(1)The market reaction of the Four items accountant criterion was negative,such as the sum"the finance implement column reports and reveals"that our country Ministry of Finance announced on September 23,2005,which asked for criticisms draft.(2)The Ministry of Finance promulgated four Financial instruments Standards on February 15,2006,which having shown active market reaction,but it wasn't notable in counting. (3)The market reaction is significantly positive when the new criterion began to be put into effect in the listed companies on January 1,2007.The main contribution of this paper is as follows:First,we studied the market reaction of the financial instruments accounting standards from the empirical perspective,which are affected by the fair value greatly. Therefore,we provided new empirical evidence for the introduction of fair value measurement.Second,Comparing to the related research,We believe that there is some relationship between the market reaction of the accounting standards and the characteristics of some firms,such as Biological assets Standards and agriculture and forestry listed companies,Oil and Gas Standards and oil and gas industry companies , Financial instruments Standards and bank-financial listed companies etc. Moreover , there is closely relationship between the Power degree of the market reaction and the expected performance of the company.