Abstract: Under the guidance of accounting standards focusing on the usefulness of decision-making, the relevant research mainly focuses on the value relevance of fair value stratified measurement, and pays insufficient attention to the adverse impact of improving relevance and reducing reliability.From the perspective of internal agency cost, this paper empirically tests the impact of various levels of measurement information on internal agency cost by taking the listed companies in 2014-2017 as samples.The results show that the first, second and third levels of fair value will increase agency cost. Further study of the impact mechanism shows that the impact of the first and second level of fair value measurement information on agency cost is due to the reduction of incentive effect by different levels in different ways, while the information effect is not supported.The conclusion of the study further deepens the economic consequences of fair value measurement information, reveals the path that fair value measurement affects internal agency cost, and provides some enlightenment for the standard making department to further improve CAS39, enterprises to implement CAS22 and to make reasonable compensation contract to reduce internal agency cost.

Key words: fair value stratified measurement, agency cost, incentive effect, information effect