MAO Xinshu,etc:Prudential Regulation, Fair Value Measurement and Financial Reporting Conservatism: Evidence from the Banking Industry

Abstract：This paper uses pooled cross-section model to examine the relationship between prudential regulation and financial reporting conservatism in the banking industry based on the listed bank companies in Shanghai and Shenzhen stock market from 2001 to 2013, and the effects of fair value measurement after the implementation of accounting standards in 2007 on financial reporting conservatism in the banking industry. We find that the earnings conservatism of listed banks is significantly greater than that of listed non-bank firms, and does not significantly decline with the widespread use of fair value measurement after the implementation of accounting standards in 2007. The finding indicates that prudential regulation strengthens financial reporting conservatism in the banking industry, which helps to protect the interests of creditors and maintain financial stability.

Key words： Prudential Regulation    Fair Value    Conservatism

作者简介: 毛新述,北京工商大学商学院副教授,100084;

梅   曦,北京工商大学商学院硕士研究生,100084;

朱  琳,对外经济贸易大学国际经济与贸易学院硕士研究生,100029。

source:Finance & Trade Economics ,No.7,2015