Research On The Influence Of Fair Value Procyclicality On Accounting Conservatism

Result from American subprime crisis caused global financial crisis in 2007.It not only caused a huge economic losses, but also had caused the international society and standard setting bodies pay attention to exploring the deep reason and countermeasures of the crisis. American financial institutions believe that "based mark-to-market" measuring principle in economic volatility period, irrational to add or diminish the real value of the enterprise assets, unreasonably overvalued or undervalued corporate profits, ultimately lead to accounting information distortion is one of the main causes of crisis.This forced the United States issued economic stability act specified stop using the fair value measurement. From originally thought the fair value is best measurement attribute of financial assets, and accused the induction crisis is one of the indispensable factor, finally stop using. The United States transformation of fair value applied concept, prompting accounting theoretical reflect on the reliability and correlation of fair value micro technology level.The crisis in part mapping out the fair value measurement theory search true and fair view concept and conservatism towards assets and liabilities, income and expenses accounting methods asymmetry of deviation.It profound disclosure each economy subject interests dynamic game and the essence of the economic consequences of financial information.In 2006,China Accounting Standards Committee presented released 39 new Standards in financial instruments, recognition and measurement, financial tools presentation, investment real estate, asset impairment 17 specific Standards such as pointed out by fair value range. But in economic globalization and international accounting standards in the process of growing convergence, because our country in fair value application range and application level compared with the developed countries still exist certain disparity, fair value procylicality caused serious economic consequences ever-present watch social classes. Therefore, how to effective application of fair value in enhancing the financial information for relevance and conservatism principle have very important theoretical and realistic significance. This paper combines with political and economic system background of our contry, selects fair value procylicality for the view towards listed companies in China accounting conservatism explorations research.This paper is divided into five chapters. Chapter one briefly summarizes the background and significance of the research, classifies in detail on the basis of research dynamic, made clear framework and research ideas, points out the innovations and shortage.The second part mainly introduces the concepts of fair value procylicality and accounting conservatism, expounds the characteristics of the fair value procylicality, analyzes the fair value and accounting conservatism theoretical basis. The third part bases on the statistics description of fair value measurement cycle, explores the transmission mechanism of fair value procylicality towards accounting conservatism and from qualitative angle analyzes the impact trend of fair value measurement on accounting conservatism under different periods of economic development. The fourth part selects the listed company financial data as the samples between 2007 and 2009 under different periods of economic development,construct comprehensive regression model, empirical test the fluctuations of fair value procylicality towards accounting conservatism. The fifth part bases on the relevant theoretical and empirical analysis, combines with political and economic system background of our contry, puts forward the main conclusion, countermeasures and research prospects.The characteristics and innovation of this paper is that:first, domestic and foreign scholars makes abundant theoretical research on fair value and accounting conservatism in single technology level, but combines them in macroeconomic level research is in short supply. This paper makes prospective study on accounting conservatism from the fair value procylicality perspective, extends the new idea of accounting conservatism, enrich the relationship theory research of fair value procylicality and accounting conservatism. Secondly, this paper selects the listed company financial data as samples between 2007 and 2009 under different periods of economic development, and bases on correction of surplus stock returns model and Shivakumar should plan- and cash flow relations measure model, empirical analysis the fluctuations of fair value procylicality towards accounting conservatism, and enhances the preciseness and comparability of empirical analysis.lt makes research conclusion more persuasive.