Accounting Standards,Fair Value and Accounting Conservatism——Empirical Evidence from Listed Companies in Chinese Capital Market from 1998 to 2008

In the background of fair value's application in China from 1998 to 2008,this paper studies accounting conservatism of listed companies by Basu's earnings-stock returns relation model and its extended model.The results indicate that,in general,listed companies in China show conditional accounting conservatism,which varies to some extent during different phases of fair value's application.To be exact,accounting conservatism was not obvious in introducing period(from 1998 to 2000);obviating period,except the abnormal year 2006,saw significant accounting conservatism;and in contrast,reapplication period(from 2007 to 2008) saw some fluctuations in accounting conservatism.Besides,the application of fair value would not necessarily lead to a decline in accounting conservatism.