| Ministry of Finance launches the new Accounting Standard for Business Enterprises in February 15th,2006.From Jan 1st,2007,new Accounting Standard for Business Enterprises has been carried out in listed companies first. There are many chances in the new standard compared to the old one. Carrying out the new accounting standard will deeply impact financial soundness and management performance of companies. While the accounting profession in China to actively implement the use of fair value accounting for the biggest bright spot when the new accounting standards, in the ocean on the other side of the United States severe financial crisis broke out and thus triggered a right of fair value accounting standards of the great controversy, and it covers breadth and impact of the high-level, is the fair value of the United States put forward the concept of the accounting profession and the gradual implementation of fair value accounting for nearly 50 years as unprecedented. While this argument ultimately the Financial Accounting Standards Board (FASB) of the moderate concessions and the United States Securities and Futures Commission (SEC) of the position and the drawing to an end, but the debate is far from over. Thus, in the international context of the financial crisis, combined with the financial crisis, international background and our inherent characteristics of the economies in transition period to study and reflect on the use of fair value of the stock price impact not only of great theoretical significance, also has a preventive measure and The practical significance. In this regard, paper through theoretical analysis and empirical methods to study the main conclusions are:①Loss or profit from changes of fair value and changes of stock price are very significant correlation. This proved Loss or profit from changes of fair value give rise to changes of stock price in some degree. Note in the fair value measurement model, the economic environment and changes in risk profile, as well as the enterprises themselves credit the change would give rise to fluctuations in corporate financial statements of the project. The same time, changes in fair value of such fluctuations in the signal into the financial statements, making the stock price also will be subject to change.②In times of economic prosperity, changes in fair value gains on the stock price is greater than the impact of changes in fair value losses; in the economic recession, changes in fair value losses on the stock price is greater than the impact of changes in fair value gains.③Changes in fair value of net proceeds from the proportion of larger companies, their changes in fair value of stock price changes greater impact; while changes in fair value of net proceeds from the proportion of smaller companies, their changes in fair value little effect on stock price changes, ie changes in fair value of stock price changes, the impact would be with the increase of its net profit was enhanced.④The change in fair value of the increase in the company will increase the volatility of stock price, the company of changes in fair value will be reduced to reduce the stock price volatility.Papers The empirical results show that changes in the fair value of an impact on stock price movements, with pro-cyclical effect, that the economy is prosperous, fair value of financial bubble generator; in the economic downturn, the fair value of financial risks is boost device.Based on the conclusions of this research, we have the following suggestions: First, we should correctly understand the fair value of stock price changes caused by the impact of capital markets in order to reduce its adverse effects possible; secondly, to reduce report on the fair value of non - identifying information; third, to strengthen supervision and improve the professional ethics... |
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