The Research On Power Mechanism Of Chinese Government Accounting Information Disclosure Under The Perspective Of Local Government

Government accounting has been promoting in changeable environments in various ways for decades. In order to be adapted to new requirements of public administration, government accounting and financial reporting around the world have been reforming under the active initiative of international institutes such as IMF, OECD, IFAC, etc. As a result, western countries conduct a series of reformation of government accounting with the accrual basis. At the domestic level, the international experience and achievements of reform exerts a demonstration effect in rebuilding Chinese government accounting standards system which promotes the reform of our government accounting. Meanwhile, with the transformation of the function of our government and perfect of public finance system, it is hard for current government accounting system to meet the needs of new situation which in return accelerates the establishment of a government accounting system with Chinese characteristics which is imperative. Declarations of comprehensively deepened reform by the Central Committee of the Communist Party of China issued by the Third Plenary Session of the 17th Central Committee of CPC defined to build government comprehensive financial reporting system with the accrual basis which made the government accounting information disclosure become a hot issue in the field of public administration. The government accounting information disclosure becomes the engine of pushing forward reform of government accounting administrative system.Firstly, this article reveals the driving mechanism of government accounting information disclosure systematically by means of building framework of government accounting information disclosure which is affected by local governments’interests. Within this theoretical analyzing framework, this article finds that both local governments interest demands ("meta-driven") and its outer environment ("field-driven") influence government accounting information disclosure a lot and it is a dynamic evolution process which interacts between micro, intermediate and macro levels. Pushed forward by different outer environments and interests, the manners, contents and structures of government accounting information disclosure will be varied. This article further proposes driving models of government accounting information disclosure for different spaces and interest demands, namely "institute-field-driven model", "market-field-driven model", "media-field-driven model", which realize the discrimination and generalization of factors and laws about the execution of local government accounting criterion system in one theoretical framework.Secondly, according to these three models, this article makes empirical verifications about driving effects of three environment factors with panel data of 31 provinces, autonomous regions and municipalities from 2006 to 2012 and introduces the factors of ("meta-driven"), including officials corruption, promotion incentives and governance incentives, etc, to test the changing laws. The results suggest that:A. Good institutional environment can improve government accounting information disclosure qualities, but corruption suppresses the influence of institutional environment to government accounting information disclosure. B. The improvement of market environment is helpful to better government accounting information disclosure qualities, which is reinforced by promotion incentives, in other words, the enhancement of promotion incentives increases the positive influences of market environment to government accounting information disclosure. C. Pressure from media contributes to advance government accounting information disclosure qualities, and this effect is restrained by governance incentives, with strong governance incentives, the driving effect of media pressure to government accounting information disclosure is restrained while it has a significant level in areas with weak governance incentives.Thirdly, based on the acquired regression results, this article makes further discussions about how to improve the positive driving effect of institutional environment, market environment and media environment on government accounting information disclosure and mend or restrain the effect of corruption, promotion incentives and governance incentives on driving effect. The consequence shows that: A. Higher education and income of resident will help to improve the institutional environment and effectively curb the corruption inhibition. B. Stable terms of officials is helpful to improve promotion incentives and strengthen the positive effect of market environment on government accounting information disclosure; However, high education is not an advantage of promoting, in contrast, it constrains the comprehensive management abilities and suppresses the acceleration of market environment to government accounting information disclosure quality. C. Perfect of juristical institution environment betters the inhibiting effect of media-monitoring and governance-inspiring. D. Improving infrastructure construction is also an important part in bettering the inhibiting effect of media-monitoring and governance-inspiring. With a more perfect infrastructure construction, media-monitoring and the positive driving effect of media pressure on government accounting information disclosure will function better.At last, this paper proposes relative policy suggestions. From the institutional level, while formulating government accounting rules and regulations, government should set explicit legal responsibilities properly. Meanwhile, government should be consistent in purifying institutional environment and protect it from negative factors such as corruption. On top of this, government should set removing fiduciary responsibility as the established goals to exercise the constraining effect of legal systems adequately and keep stability of government accounting motivation system. From the market level, firstly, government should use former experience as reference to make market function well. Secondly, government should build healthy market environment, better market rules and reshape ordered market system. Thirdly, government should keep perfecting appointment and assessment institution to control local government behaving preference in terms of politics and officials incentives. From the aspect of public opinion, government should improve communication with media, public and other information users and make full use of media platform to build an interaction institution which has fully considered the opinions of government departments, market institutes and public relations. On top of this, the function of media of managing and supervising should be standardized and reinforced, and imposing on local government by agenda setting and the guidance of public opinion. From the aspect of local government initiative and consciousness should be encouraged. Firstly, specialized supervising and procuratorial organs should be set for making regular or irregular inspection on government accounting information disclosure to improve the quality. Secondly, internal accountability mechanisms should be set for investigating undesirable consequences of government accounting information disclosure. Thirdly, coordination between governmental and nongovernmental audit should be established to strengthen the consistency, professionalism and authority of the subject of government accounting information disclosure. Fourthly, enthusiasm and initiative of people’s congress should be fully arouse to ask for advices from the public which should in turn restrain and guide the right-operation of local governments, and it will protect from being abused.