The Value Relevance of the Foreign Translation Adjustment
分析外币折算调整的经济含义，实证发现制造业企业的折算调整与价值损失相关，而非价值增加，因为会计规则与汇率变动的经济效果相反。
The study presents an economic analysis of the foreign translation adjustment and empirically examines the association between change in firm value and the foreign translation adjustment for a sample of manufacturing firms. The study shows that, for firms in the manufacturing sector, the translation adjustment is associated with a loss of value instead of an increase in value. This result stems from the fact that, for firms in the manufacturing sector, the accounting rules governing foreign currency translations generally produce results opposite to the economic effects of exchange rate changes.