Empirical Research On Transition Of Value Correlation Of Accounting Information

Accounting is a mechanism which is used to transmit information. It guides capital's flow through transmitting accounting information, to optimize the allocation of resources. Only if does the accounting information have high quality could be in favor of the external stakeholders'decision, and hasten the virtuous cycle of capital market. Since 1992 the market economy has developed very quickly, and the accounting system has been marketing and international. From"Accounting Standards for Business Enterprises"in 1992 to"Accounting system for Business Enterprises"in 2000, to"New Accounting Standards for Business Enterprises"in 2006, every innovation of accounting could speed with the development of market economy. The target of financial accounting is varying from fiduciary responsibilities to decision-making availability, and emphasizes that the accounting information is in favor of the investors'decision. The value correlation of accounting information has become important index which could measure the level of marketization of accounting. In china the value correlation of accounting is very low before year 2000. Then how did the value correlation change during 2001-2008, and how did the innovation about accounting system affect the value correlation?This article will utilize normative analysis to research theoretical basis about value correlation, and then use data of quoted company belonging to year 2001-2008, referring to F-O model, and inlet a explanatory variable"cash flow"and some other control variable which would affect the share price. The new model could be used to quantize the value correlation more accurately, and then the curve graph about value correlation should be made to analyze the influence factor by trend analysis.The conclusion is that the value correlation of earning per share is better than that one of net assets per share and cash flow from operating activities per share. It indicates that the investor always choose accounting earnings to make decision. After the accounting standard proclaimed, the net assets per share increased a little, because the concept of the accounting standard varies from"revenue-expense view"to"asset-liability view". The cash flow from operating activities per share could barely explain the share price, but the value correlation appears a rising trend, so the statement of cash flow could help the investor. The value correlation of accounting information couldn't increase in pace with the improvement of accounting standard. The value correlation rose very quickly when the accounting standard carried out, but dropped in the next year, the persistence is very weak. The reason is that the obstacle emerges in implement process of accounting standard, and influent the quality of accounting information at last. The irrational behavior and cognition of inventors also cut down the value correlation. The improvement of value correlation of accounting information needs inventors'cognition process and constitution of confidence. In future, special attention should be paid to consummate the policy when producing and publishing accounting information, to improve the quality of accounting information. The professional knowledge and confidence of investors should be improved by all kinds of method, to reduce the influence which the market noise brings to the investors.