Research On Value-relevance Of Fair Value Accounting Information

Fair value, from being set up to continuous being perfected, has been one of the hot issues in the scientific community. With the development of global economic integration, the concept of fiduciary duty evolves gradually by decision-usefulness view, and accounting measurement model evolves gradually by fair value measurement. Accounting Standards for Business Enterprises in China formally introduced the fair value measurement in 2006. In order to further clarify the standard usage of the fair value, The Accounting Standards for Enterprises No. 39 — Fair Value Measurement was issued on January 26, 2014. This article mainly discusses the accounting information on the fair value correlation with the stock price, namely, whether to enhance the value relevance of accounting information.This paper mainly consists of the following four parts:The first part is introduction. The fair value of the literature is reviewed in this part, it is concluded that the application of fair value can enhance the value relevance of accounting information.The following is the theoretical part. This part is the information relevance theory of the fair value measurement. Including the relevant concept definition of fair value, this article introduces the basic theories of the efficient market hypothesis, and decision-making useful theory.The third part is the empirical part. The section chooses the data of China’s listed commercial banks from 2011 to 2013 as sample data. Based on two assumptions, this paper adopts the revised pricing models to construct research models respectively, and researches on these two models by selecting variables to carry out descriptive analysis and regression analysis.It is concluded that the results which is obtained equals the expected ones: changes in fair value per share shows weak correlation with the share price, per share net changes in financial assets available for sale shows a strong correlation with the share price, namely, the fair value measurement has the value relevance of accounting information.The final part is the conclusion and suggestions. Based the above empirical analysis, this section draws the conclusion that the fair value measurement model can enhance the value relevance of accounting information, and can make investors more comprehensive and accurate to estimate the value of the enterprise’s investment. Then, according to the current situation of the development of fair value in our country, this paper puts forward some feasible suggestions to speed up the theoretical research of fair value and proposes to draw lessons from foreign fair value evaluation method. This will lay a solid foundation for the future widespread application the accounting information of fair value measurement in China.