ارتباط مقالات ارزش ـ ارتباط برای تنظیم استاندارد حسابداری مالی: دیدگاه دیگر

This paper explains that value relevance research assesses how well accounting amounts reflect information used by equity investors, and provides insights into questions of interest to standard setters. A primary focus of financial statements is equity investment. Other uses of financial statement information, such as contracting, do not diminish the importance of value relevance research. Value relevance questions can be addressed using extant valuation models. Value relevance studies address econometric issues that otherwise could limit inferences, and can accommodate and be used to study the implications of accounting conservatism.

This paper offers a view of the relevance of value relevance research for financial accounting standard setting that contrasts with the view offered in Holthausen and Watts (2001) (hereafter HW). A key conclusion of HW is that value relevance research offers little or no insight for standard setting. As active participants in value relevance research and standard setting, our purpose is to clarify the relevance of the value relevance literature to financial accounting standard setting. Because we are discussants of HW, we only address issues raised in that paper. In particular, HW is limited in scope to a discussion of the relevance of the value relevance literature for financial accounting standard setting; it does not comprehensively review the value relevance literature. Accordingly, our discussion is similarly limited. A key conclusion of our paper is that the value relevance literature provides fruitful insights for standard setting. This paper also clarifies several misconceptions articulated in HW regarding value relevance research. In particular, we make six points, which contrast with statements in HW. First, value relevance research provides insights into questions of interest to standard setters and other non-academic constituents. Although there is no extant academic theory of accounting or standard setting, the Financial Accounting Standards Board (FASB) articulates its theory of accounting and standard setting in its Concepts Statements. Using well-accepted valuation models, value relevance research attempts to operationalize key dimensions of the FASB’s theory to assess the relevance and reliability of accounting amounts. Second, a primary focus of the FASB and other standard setters is equity investment. Although financial statements have a variety of applications beyond equity investment, e.g., management compensation and debt contracts, the possible contracting uses of financial statements in no way diminish the importance of value relevance research, which focuses on equity investment. Third, empirical implementations of extant valuation models can be used to address questions of value relevance, despite the simplifying assumptions underlying the models. Fourth, value relevance research can accommodate conservatism, and can be used to study the implications of conservatism for the relation between accounting amounts and equity values. In fact, value relevance research is a basis for establishing that some financial accounting practices are perceived by equity investors as conservative. Fifth, value relevance studies are designed to assess whether particular accounting amounts reflect information that is used by investors in valuing firms’ equity. Because ‘‘usefulness’’ is not a well-defined concept in accounting research, value relevance studies typically do not and are not designed to assess the usefulness of accounting amounts. Sixth, econometric techniques can be and are applied to mitigate the effects of common econometric issues arising in value relevance studies that otherwise could limit the validity of the inferences drawn from such studies. The paper proceeds as follows. Section 2 discusses the hypotheses tested in value relevance research and summarizes what we have learned from the subset of value relevance research related to fair value accounting. Section 3 explains how value relevance research addresses questions of interest to accounting standard setters, in addition to a broad constituency that includes academic researchers, financial statement preparers and users, and other policy makers. Section 4 discusses key research design issues associated with value relevance research, including choosing between approaches examining levels of and changes in value, selection of variables to be included in the estimation equation, and interpreting measurement error. Section 5 summarizes and provides concluding remarks.

This paper presents a view regarding the relevance of value relevance research for financial accounting standard setting that differs from that presented in HW. A key conclusion of HW is that value relevance research offers little or no insight for standard setting. As active participants in this research and standard setting, we clarify the relevance of the value relevance literature to financial accounting standard setting. A key conclusion is that the value relevance literature provides fruitful insights for standard setting. We first discuss the hypotheses tested in value relevance research and summarize the major findings from the subset of value relevance research related to fair value accounting. We then explain how value relevance research addresses questions of interest to accounting standard setters, as well academic researchers and other non-academic constituents of the research. Finally, we discuss key research design issues associated with value relevance research. We also clarify several misconceptions articulated in HW regarding value relevance research. In particular, in contrast with HW, we conclude:(1) value relevance research provides insights into questions of interest to standard setters and other non-academic constituents. (2) A primary focus of the FASB and other standard setters is equity investment. The possible contracting and other uses of financial statements in no way diminish the importance of value relevance research. (3) Empirical implementations of extant valuation models can be used to address questions of value relevance despite their simplifying assumptions. (4) Value relevance research can accommodate conservatism, and can be used to study its implications for the relation between accounting amounts and equity values. (5) Value relevance studies are designed to assess whether particular accounting amounts reflect information that is used by investors in valuing firms’ equity, not to estimate firm value. (6) Value relevance research employs well-established techniques for mitigating the effects of various econometric issues that arise in value relevance studies. It is important to emphasize that conducting value relevance research that provides insights into questions of interest to academics and non-academics alike is not an easy task. It takes considerable time and effort to learn about questions of interest to various financial reporting constituencies, to understand the institutional details of the accounting amounts being studied, and to develop research designs capable of addressing research questions that correspond to questions of interest. As financial markets expand and become more complex and accounting standards attempt to keep pace with these changes, it is a challenge for accounting research to make a substantive contribution in addressing questions relevant to standard setting.