Exploration of Volatility and Market Risk of Stock Return Rate in Listed Financial Enterprises Based on Fair Value Measurement

DOI

10.2991/icoeme-19.2019.15How to use a DOI?

Keywords

fair value; fluctuations of stock price; investment efficiency

Abstract

The measurement attribute of fair value has been proved to improve the transparency of financial statement information. However, there are few guidelines on fair value measurement in accounting standards, so it is difficult to meet the need of fair value measurement in practical application. Taking the listed companies from 2009 to 2015 as samples, Richardson model is adopted as the tool to calculate the investment efficiency, from the perspective of fair value hierarchy, whether the stratified measurement of fair value can improve the investment level in the Chinese market environment is investigated theoretically and tested empirically. The study shows that the net asset information measured at the first level of fair value is reliable, which is beneficial to improve the quality of accounting information, reduce the information asymmetry and agency cost between contracting parties, and improve the investment efficiency of the company; the net asset information measured at the second level of fair value has a promoting effect on the investment efficiency, indicating that even though the net asset information content measured at this level is lower than that measured at the first level, many reliable and relevant information is still disclosed; due to the lack of accurate and fixed valuation technology, net asset information measured at the third layer of fair value is susceptible to manipulation and triggers opportunistic behavior. However, the number of items measured at this level is small, resulting in less information disclosed, and the overall effect on investment behavior is small.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hui Xue
PY  - 2019/06
DA  - 2019/06
TI  - Exploration of Volatility and Market Risk of Stock Return Rate in Listed Financial Enterprises Based on Fair Value Measurement
BT  - Proceedings of the 2nd International Conference on Economy, Management and Entrepreneurship (ICOEME 2019)
PB  - Atlantis Press
SP  - 69
EP  - 76
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoeme-19.2019.15
DO  - 10.2991/icoeme-19.2019.15
ID  - Xue2019/06
ER  -