Research On The Reginal And International Coornidation Mechanism Of Accounting Standards

Accounting standards are the basic institutional arrangements in capital markets and have great influence on the quality of accounting information of enterprises. In the context of globalization, the internationalization of accounting standards is one of the issues of common concern for governments, enterprises and investors. Throughout the history of the development of accounting standards, accounting standards adhering to the international tradition of "Accounting" and are subject to specific environmental influences and constraints in different countries and make evolutionary progress and also form the national accounting standards system based on the background of the country. On this basis, the global economic expansion of trade and capital flows is a strong impetus which gradually makes the accounting standards much more international and the ultimate goal is to achieve global harmonization. In the process of internationalization of accounting standards, the region and the international coordination become one of the important aspects. This paper attempts to examine from a theoretical perspective the process of international accounting standards and analysis the connotation and operation mechanism of coordination mechanism of accounting standards by using of game theory institution analysis in depth. Especially in light of existing regional and international coordination mechanisms of accounting standards, this article uses theoretical analysis and empirical method of combining and explores the inherent causality and practical effects of regional and international accounting standards coordination mechanisms. Paper is divided into five chapters, as follows:Chapter 1:The introduction of Accounting Standards Coordination Mechanism. This chapter introduces the research background and significance of this paper, the relevant domestic and international literature review, definition of related concepts, research ideas and research methods, main contents and innovations.Chapter2:The establishment of Accounting Standards Coordination Mechanisms. This chapter mainly review the creation of accounting standards and its development process to sort out an international tradition and provide historical evidence to support this study; at the same time, based on the institutional and public goods nature of accounting standards we build the basic framework of regional and international accounting standards coordination mechanism and proposed the " three dimensions" of accounting standards. This chapter provides a basic framework for logical analysis with the following.Chapter3:Evolutionary game theory analysis of Accounting Standards Regional and International Coordination Mechanism. This chapter analyzes the system from game theory perspective on accounting standards which generated from habit to customs, from customs to convention, and further institutionalized. Meanwhile this chapter analysis the consequent steady spread process of accounting standards from the national to the regional, from regional to international platform and demonstrate it by using the game theory model which reflecting the coordination mechanisms and their causal relationships inherent in the law of development.Chapter4:Empirical test of Accounting Standards Coordination Mechanisms. In this chapter, based on the theoretical framework, the author use empirical methods to test some of the hypothesis. This chapter mainly includes three parts. The first part make empirical of the factors that affect the national strategic choice of international convergence of accounting standards; The second part test the validity of the current existing regional coordinating organizations of accounting standards; The third part starting from the micro-level, in the perspective of investor decision-making, examines the international convergence of accounting standards implementation effect.Chapter5:The conclusions and policy recommendations. In this chapter, the main conclusions of this article to collate and summarize, based on the relevant policy recommendations put forward, and pointed out the limitations of this article and future research directions.Through this research, the main research conclusions are as follows:(1) The historical process of Accounting Standards international harmonization indicates that the public goods and institutional characteristics determine that the accounting standards coordination mechanism itself depends on the macroeconomic institutional environment. At the same time the interests of all parties are significantly different at different levels of accounting standards coordination.(2) The coordination mechanisms operating mode is different in each level of international coordination of accounting standards. National accounting tradition is the basis for the formation of accounting standards in the country level and the establishment of accounting standards depends on the government’s’order’. In regional and international accounting standards coordination, different countries are equal participants in the harmonization process and its coordination mechanism is similar to the’market’mechanism and the coordination among countries has the basic features of the evolutionary system.(3) The empirical part of the study conclusions:First, the economic factors that affect the international convergence of accounting standards in a country are the primary factor in decision-making and the political and cultural factors also affect them. These factors constitute the basic driving force of a country in participating international accounting standards coordination; Secondly, the regional coordinating organizations of accounting standards in the short term does not play its expected role; Finally, the effects of regional coordinating organizations is not obvious,but from the perspective of domestic investors it is still beneficial for our country’s capital markets to actively participate in the process of international harmonization of accounting standards.Finally, the authors put forward relevant policy recommendations on strengthening the capital market institution building, participating actively in regional and international coordination organization and developing international coordination strategy of accounting standards in line with China’s national conditions.