Full degree research enterprise value reflects the accounting - based information
|School||Central South University|
|Keywords||Accounting information Value of enterprise the full value Correspondence analysis|
The function of accounting Information reflecting the value of enterprise is one of the most important characteristic among characteristics of the quality of accounting information. The studies of contents of accounting information from many different perspectives shows that our accounting information has value—relevance. However, the all researches of the value—relevance are lack of study related to the specific full degrees. This paper has been referred to the full accounting information generally sufficient to reflect the value of enterprises. The studies of value—relevance have highlighted qualitative relationship of accounting information and the value of enterprise. The properties of accounting information reflecting the full value was not only an requirement of accounting system for continuous improvement, but also important to protect the healthy development of the capital market conditions. This paper studied the value of specific research degrees of accounting information under current accounting system.This paper defined the full value implication based on analyzing the market mechanism of accounting information reflecting enterprise value. Through building model describing the relationship of the market value of the enterprise (cumulative excess return) and the value of the enterprise measured by accounting information, the empirical studies test the ability of accounting information reflecting the size of value. Correspondence analysis also showed that accounting information can not fully reflect the value of enterprises. Meanwhile this paper explained a preliminary reason from the angel of accounting theory why accounting information is not fully reflect the value.Factors which affected the quality of accounting information in the accounting system contain not only the degree of development, but also the implementation of the accounting system. When we evaluate contents of accounting information using market indicators, our judgments for the quality of accounting information are affected by the ability of investors understanding the content of information and investment concepts and other complicated human factors. In the background of New guidelines published, this paper analyzes the system itself and concluded that new guidelines will enhance its ability to reflect the value in accounting recognition, measurement and report generation.