Study On The Influence Of Equity Structure On Measurement Model Choice Of Investment Property

With the rapid development of China's market economy and the continuous rise in real estate market prices,more and more companies have turned their investment perspectives into real estate,which has led to a growing number of companies with investment real estate.In view of the significant differences in the financial status and Operating results of investment real estate under the cost model and the fair value model,the selection of the measuring models of investment properties has received increasing attention.Compared with the cost model,the fair value model can reflect the accounting information of the company more realistically and objectively.However,according to the statistical results of this paper,the vast majority of companies in China have adopted the cost model until now,and the number of companies choosing the fair value model is very small.Therefore,this paper studies the choice of the measuring model of investment properties.Corporate governance structure is an important factor influencing the company's financial behavior and performance.Its foundation is the ownership structure.Different ownership structure leads to different organizational structure of the company,resulting in different corporate governance structures and different effects on the company's financial behavior.In order to standardize the selection of the measuring model of investment properties and improve the quality of accounting information of listed company,this paper is mainly to analyze the relationship between the choice of the measuring model of investment properties and the degree of ownership concentration,the degree of equity balance and the nature of equity under the background of a special Chinese system.This paper takes the sample of A-share listed company of Shanghai-Shenzhen from 2014 to 2016 as a sample.Based on a systematic theoretical analysis of the influence of equity structure on the choice of the measuring model of investment properties,an empirical research method is adopted to test the impact of the equity structure to the choice of the measuring model of investment properties.Based on the empirical findings,this paper proposes some strategies to optimize the ownership structure and regulate the choice of the measuring model of investment properties.The study finds that:(1)There is a negative correlation between equity concentration and the fair value model of investing real estate.Thehigher the concentration of ownership,the greater the probability that listed company choosing a cost model;(2)Compared with the actual controller of the listed company which is not state-owned,the actual controller of the state-owned listed company is more likely to choose the cost model;(3)There is a positive correlation between shareholding balance,management shareholding ratio,general corporate shareholding ratio and the fair value model of investment properties.The higher the degree of equity controlling,the higher the proportion of management holdings,and the higher the general corporate shareholding ratio.The probability of the listed company choosing the fair value model to measure investment properties is higher.Finally,according to the conclusions of the study,corresponding countermeasures and suggestions are proposed: appropriately adjust the degree of equity concentration to format the governance mechanism of mutual checks and balances of equity,adjust the ownership structure of state-owned holding companies to diversify the investment entities,appropriately increase the degree of the equity incentives to management,and further improve the disclosure system of listed companies.