| 1970, Eugene Fama proposed the efficient market hypothesis (EMH), laying an effective theoretical foundation for capital market research, and after that, the scholars try to research the capital market by using this theory. However, in almost every real capital market around the world, a growing number of market anomalies have being appearing which can’t be explained by the efficient market hypothesis. So, gradually, some scholars have suggested that it is possible that various arbitrage can exist in a real market. And as a very important phenomenon, the accrual anomaly in a capital market has been taken seriously.In1996Sloan proposed the accrual anomaly. He hold the opinion that when it comes to the predictive ability for the future earnings of a company, the cash flow is different from the accounting accruals. Investors often do not pay attention to this point, and this lead to overestimating the price of a company which has a high accrual. Finally it results in the accrual anomaly. And in1998, Beave put forward the concept "accounting earnings". Till now, as one of the most important financial report data, accounting earnings has become a key indicator to measure the profitability of an enterprise. As high quality earnings, it can reflect the enterprise existing economic results and predict the future economic benefits accurately. And scholars around the world have studied from various aspects, the existence, its main origin and an international comparison.In1990, Shanghai Stock Exchange and Shenzhen Stock Exchange have been established, which marks the establishment of China’s capital market. China’s capital market has been developed rapidly during the recent10years. And with the development of the capital market, Chinese scholars also began to focus on various types of market anomalies.Compared with the foreign scholars, the domestic scholars in the early study often use foreign methods for reference to research the capital market. And they pay the main attention to the existence of the accrual anomaly. In the recent years they put forward the opinion that the special nature of our capital markets may cause different results of the accrual anomaly.This paper mainly studies the effects to accrual anomaly by proposing new accounting standards. Firstly, due to the recent research, scholars found that in American capital market, the accrual anomaly has weakened even disappeared. Considering our new accounting standards, the accrual anomaly in our capital market may be reduced. On the other hand, because of the unique nature of our capital market, the introduction of fair value may strengthen the accrual anomaly.The direct cause of the accrual anomaly is the different persistence of the cash flow and the accounting accruals. Based on the capital market or external users of financial reporting, scholars study the causes of accrual anomaly generally based on the EMH, to find whether there is the possibility to distinguish low persistent accruals. But change a perspective, from a micro perspective, the cause of the accrual anomaly is low persistence of accruals and we try to find these accruals which result in an overall persistence low is low, and the investors can not accurately identify the type of this information led to the accrual anomaly in the capital market.This paper has a detailed analysis of the accrual anomaly, including the existence and the influence of new accounting standards. We mainly use a combination of normative research and empirical research. As follows:The first part mainly introduces the background and meaning of this paper, the basic concepts and theoretical system of the accrual anomaly, and points out the innovations of this paper.The second part reviews the domestic and foreign research results of the accrual anomaly.The third part introduces the relevant concepts and theoretical basis in this paper, as a basis for our study. It emphatically analyzed the effect to the accruals by the implementation of new accounting standards.The fourth part is the empirical research design, mainly introduces empirical assumptions, the variables, and empirical models in this paper.The fifth part analyzes the empirical results, establishes stability test, and try to combine empirical results with theoretical analysis, in order to obtain the reasonable conclusion. The sixth part is the end of the paper, mainly analyzes and summarizes the result according to the front parts of the paper, and then draws the conclusion.This paper follows the Sloan of the main ideas,applying the classical empirical test model to test, then use Richardson method to divided the accruals into three parts:the working capital changes (Δ WC), the long-term operating assets changes (Δ NCO) and the financial assets changes (Δ FIN). The empirical results show that:(1)The accrual anomaly in Chinese capital market does exist, and as a result of the implementation of the new standards, existence of accrual anomaly is more remarkable.(2) Divided the accruals, we can have a sort of three parts. In accordance with the ability to predict future earnings:the financial assets changes (Δ FIN) is stronger than the working capital changes (ΔWC), and the working capital chan-ges (Δ WC) is stronger than the long-term operating assets changes (Δ NCO).(3) The implementation of new accounting standards weakened the persistence of three parts accruals.Because of China’s capital market started lately, it still has many defects, such as the low Transparency of listing Corporations’information.To the main informa-tion of listing Corporation, the CSRC only requires the disclosure, but they do not have a standard on how to disclose, and which should be disclosed. In addition, the main investors in Chinese capital market can be divided into two types of institutional investors and individual investors. The former have the ability to search and explain the information provided by the company; while for the latter, it’s very difficult to find useful information in a large number of listing corporation disclosure of information, and this may result in a wrong choice in investment.In addition, the frequent change of accounting standards, the low degree of legal protection to investors and other factors may cause the aggravation of the accrual anomaly. Although, this paper does not based on an investor’s perspective to analysis the problem, but it is certainly that the problem of corporate governance has been more prominent in our capital market. And in order to improve the efficiency of the capital market, we should focus on improving the management of listing Corporation, improving the reliability of accounting information and cultivating the sophisticated investors.The main contributions of this paper:(1) using a large sample from2000to2012as the research sample to make the empirical regression results more reliable;(2) based on the implementation of new accounting standards, introduce the Dummy variable Y to study the accrual anomaly (3) many scholars based on the capital market to study the accrual anomaly, while this paper try to figure out this problem from a different angle of view. We excavate the cause of the accrual anomaly from the accounting system itself. |
