Research On The Value Relevance Of The Fluctuations Of Owner's Equity

Accounting standards(2006)first put forward the financial statements disclosed by the enterprises must include statement of change in equity.From then on,the statement of change in equity replaced the statement of change in shareholders' equity and statement of profit distribution formulated in 2001 accounting standards and became one of the main statements together with income statement,balance sheet and cash flow statement.Statement of changes in equity provides financial report users current accounting information about what the specific composition of owner's equity are and how it changes,which is beneficial to enterprise owners have a better understanding of own equity change in detail and the implementing of management layers' fiduciary responsibilities;It has advantages for the investors' prediction of the enterprise future financial position and operating results sustainability,so as to make the correct economic decision;At the same time,it embodies the concept of "comprehensive income",in favor of the international convergence of accounting standards.Therefore,the study of changes in owners' equity information has important theoretical and practical significance.In the theoretical part,first of all,this paper introduces the evolution process of four important period information disclosure way of owner's equity from the angle of history,which includes background,main content,information on the owner's equity promulgated by accounting standard for business enterprises.Then,it explains in detail the information content of the statement of changes in owners' equity.The statement of change in equity includes at least the following six parts:(1)Accounting policy change and cumulative effects of error correction;(2)net profit;(3)interests of gains and losses that recorded in the owner's equity and its formation;(4)the changes of owners' investment and profit distribution to the owners;(5)obtain legal surplus in accordance with the provisions;(6)regulation and balance of paid in investment(or in stock),paid in surplus,surplus from profit and undistributed profit.In the empirical part,this study chooses Shanghai stock exchange and Shenzhen stock exchange in 2009-2012 A-share listed companies as the primary sample,stock investment yield as the dependent variable,and the variables that reflect total amount of owner's equity fluctuations and owners' equity structure fluctuations as the independent variable.The purpose of this empirical research is to find out the relationship between stock investment yield and total amount of owner's equity fluctuations along with owners'equity structure fluctuations.By comparative analysis,empirical analysis reaches the following conclusion:total amount of owner's equity fluctuations and owners' equity structure fluctuations have a certain value relevance;Whether owner's equity total fluctuations or owners' equity structure fluctuations,Shanghai stock exchange shows that the value relevance of the fluctuations of owner's equity is higher than that in Shenzhen stock exchange;Both Shanghai stock exchange and Shenzhen stock exchange have several same findings:capital fluctuations and the fluctuations of net income have value relevance;the fluctuations of other comprehensive income has no value relevance;the value relevance of the fluctuations of net profit is higher than the fluctuations of other comprehensive income.