Study On The Value Of The Consolidated Financial Statements

More and more listed companies need to disclose consolidated statements with theenterprise grouping trend and accounting information supervision. Consolidated statementshave become an important source of information in decision-making. At the same time,consolidated statements is the difficult point and hotspot in research on accounting. At present,foreign scholars have carried on a large amount of research on theirs value-relevance and a lotof valuable conclusions and documents have been produced. Compared with foreign countries,domestic research is still in the behindhand stage, the study on the value-relevance test ofaccounting information.At the same time, the value of the consolidated financial statementsare the focus of attention of the investors in the stock market, how to improve the value of theconsolidated financial statements is the problem to be solved. Research and analysis thefactors affected the value of the consolidated financial statements will have significanttheoretical and practical significance to raise the value of company’s financial statements forthe group.This paper discussed the internal and external factors that affect the value of therelevance of the consolidated financial statements, on the basis of extensive reading ofdocuments, through the theoretical analysis and empirical test.Main Equations As Following: EPS and BPS is the main factor affecting the stock pricethrough empirical validation, external investors tend to invest according to these twoindicators; internal factors, such as the size of the group companies, the nature of thecontrolling shareholders, the company’s operations and financial condition, etc, affect thevalue of the consolidated financial statements; market factors, the mechanisms of investorprotection and perfect legal environment, regulatory and independent audit are the key factorsto affect the consolidated financial statements.