Value relevance of financial assets' fair values: Evidence from Chinese listed companies

Xiaoqing Zeng
2012 African Journal of Business Management  
The primary objective of this paper is to examine the value-relevance of financial assets' fair values using data from all A-share listed companies in non-financial industries during 2004 to 2009 in China under IFRS-based new China Accounting Standards (CAS) . We find that value-relevance of financial instruments is improved following the implementation of the fair value accounting standards, as predicted. Specifically, the change in fair values of financial assets held for trading, financial
more » ... rading, financial assets available-for-sale, or the sum of the two financial assets have incremental explanatory power over stock returns to their historical costs.
doi:10.5897/ajbm11.275 fatcat:4ssu2o7uxjdg5bxmrbp3thbnqi