Study On The Relationship Between Fair Value Measurement And The Operating Performance Of Commercial Banks

In recent years, the fair value measurement has been one hot topic in the accounting profession, at home and abroad, especially after the Western financial crisis, discussions on the fair value of the pro-cyclical effects come and go. From 1998, China began to introduce fair value in a small area, to limit its use in 2001, to adopt its use widely in 2006, our accounting measures have been in line with international standards. Ministry of Finance in January 2014 formally promulgated the "fair value" accounting standard No.39, marking the measurement of fair value once again with the international convergence. At the same time, on the fair value measurement of the pros and cons, can more accurately reflect the operating performance of listed companies, whether the listed company through the fair value operation profit phenomenon as well as the existing in the application of fair value in the practical difficulties and other issues also emerge in endlessly. As the most widely used about fair value, commercial Banks which are an important part of the country’s economic have become the focus of the research on fair value measurement.Commercial banks, as an integral part of the country’s financial development, its operating results represent not only the operating level managers, but also represent our country’s overall economic performance. For investors, compared in terms of historical cost, fair value can more accurately reflect the current value of an asset or liability of commercial banks, can provide greater reference value. However, the fair value of the presence of pro-cyclical effect, can cause to business performance by fair vale measuring be a certain degree of deviation, coupled with external market conditions for value measurement of the fair is not perfect. If you cannot adopt a relatively accurate fair value to account assets, liabilities and operating results of commercial banks, will seriously mislead the users of financial statements of commercial banks. At the same time, there are certain obstacles in the promotion of fair value, which need to gradually improve in the process of application. Therefore, studying the affect between the fair value measurement and operating performance of commercial banks, has become the starting point of this article.On the basis of previous studies, firstly, this paper analyzes the applications of fair value in commercial banks, and the attitude of commercial banks for fair value, after the implementation of the guidelines. Secondly, this paper analyzes the influence of fair value to the financial statements of commercial banks and operating performance measuring indicators, and takes sensitivity analysis to explore the relationship between the changes in fair value and net profit. Thirdly, this paper takes related financial data of 16 listed Banks from 2007 to 2014 as sample, with SPSS 17.0 statistical software, to do regression analysis about the impact of changes in fair value to commercial banks operating. Then this paper finds that there is a positive correlation between the changes in fair value and net profit of commercial banks, and there is a positive correlation between the volatility of changes in fair value and volatility of earnings per share of commercial banks, and after the implementation of the guidelines, the explanatory power of fair value measurement to the net profit of commercial banks is enhanced. Finally, this paper puts forward corresponding suggestions, from three aspects of the commercial banks, financial regulators and accounting standard setters, to perfect the fair value measurement in commercial banks.