| In 2006, China’s ministry of finance promulgated new accounting standards for enterprises and carried out it from 2007, applying Fair Value Measurement(FVM) in some provisions. The fair value measurement has been used in our country for 10 years up to now which changs the accounting operations, triggering the volatility of financial statements and influence to the financial performance. Previous studies indicate that there are less empirical evidences on the FVM, the long term of relation between FVM and financial performance in a specific industry in particular. Due to the traits of dynamic and timeliness with the fluctuations in the market, FVM is widely used in the financial enterprises, which provides a round and long-term data base to do the analysis on the relations between FVM and financial performance of the listed banks.On the basis of the related theories, the main factors of the listed banks’ performance influenced by FVM were studied firstly. Next, referring to the panel data, the association of FVM and financial performance was presented. Moreover, comprehensive comparisons have done to show the different influence from historical cost measurement and fair value measurement of the financial performance, and to discuss the preference of stated listed banks and non- stated listed banks on the influence financial performance owing to the application of FVM. Therefore, this thesis can provide a complete situation of the influence objectively and actually. Eventually, it is concluded that a) the FVM has a significant positive influence to the listed banks’ financial performance, b) the total influence on listed banks’ financial performance is small and it less than the effect of historical cost measurement, and c) there is less correlation between the nature of banks and the preference. Additionally, in accordance with the conclusion, more recommendations on optimizing the market environment,strengthening the risk management, and improving the valuation techniques were presented. |
