Rational Behavior Research On Accounting Information Discloure Of Listed Company

Accounting rational behavior is one of the main fields of accounting theory’s empirical study. Surrounding rational choice of the accounting policies and rational expression problems of accounting language, domestic and foreign scholars did a great deal of fruitful research. However, two kinds of rational behavior have been separated respectively in these studies, and there is no consideration for accounting information unity, which is consist of words and numbers, and to explore the economic consequences of accounting rational behavior.For these reasons, In this dissertation, theoretical analysis and empirical testing methods are used to explore China’s market reaction of two kinds of accounting rational behavior and a series of theoretical and practical issues, and also its regulation to listed companies to provide theoretical support and policy recommendations.This dissertation is divided into three parts with seven chapters. The main contents are as follows:The first part is accounting basic theory of rational behavior, including chapter 1 to 3.This section aimed at China’s listed companies’ disclosure of accounting information in the rational behavior background, discussed topics’ relevance to introduce the main contents of this study, methods to construct the contents of the framework of this dissertation. The domestic and international literature reviews of two kinds of rational behavior have been made the necessary comments. In building a theoretical foundation of 3th chapter, drawing on the selective financial misrepresentation hypothesis, corporate contract theory, the economic consequences doctrine, the mechanical hypothesis, as well as the impression management theory, put forward a procedural rationality as a logical starting point to establish the accounting rational behavior objectives, principles and means, that is the overall utility maximization as the goal, self-serve and satisfaction principle as a guide, and through the choice of accounting policies and other means of self-biased expression language, the accounting objective of rational behavior can be achieved.The second part is empirical research part of accounting rational behavior, the focus of this dissertation, including chapter 4 to 6.Chapter 4 focused on rational choice analysis of accounting policies, the motives for earnings management of rational choice of accounting policies are analyzed. Firm size, charge restrictions, debt covenants and other assumptions are put forward, the statistical tests and analysis to rational behavior in income smoothing, big bath, and policy-induced earnings management has verified generally the existence of China’s listed companies in these three kinds of behavior, however, income smoothing has not been tested significantly. The hypothesis have been tested partly on the specific assumptions such as enterprise scale, the debt contract, reversing losses motivation, share mathching motivation, while the other assumptions in this article have not been verified, indicating that the current financial crisis on the global economy had a profound impact, changing the accounting rational behavior way, indirectly indicating that accounting policies rational choice behavior can be changed and adjunsted with the environment.Chapter 5 select part of annual report on the classification of different performance of enterprises to compare the similarities and differences of language description of different type enterprise, analyzing the readability and attribution of language description based on calculation model of readable and self-serving attribution. Through statistical analysis of language description of the sample companies, annual report readability and self-serving attribution are at a higher level. However, the performance and debt contract hypothesis on the readability have not been verified, indicating that annual report readability has not been concerned by various factors’ restrain; in the test of self-serving attribution model, the enterprise size and return on equity have been vertisfied, while compensation contract has not passed, indicating that the managerial compensation of listed companies in China have not been matched to their efford and performance. Compensation system needs to be improved furthermore.Chapter 6 illustrates the market reaction of accounting rational behavior, discussing the economic consequences of accounting rational behavior effects, establishing noise impact and market response model of rational behavior of accounting information disclosure, and studying information noise, short-term and long-term market response, and drawing some valuable conclusions:a clear signal noise exist in loss enterprises, income smoothing and big bath behavior; the short-term market reaction of accounting rational behavior is positive, while the long-term market reaction is negative, demonstrating the accounting rational behavior on the markets can only maintain short-term effects, on the long run, no helping.The third part is related to the conclusions and policy recommendations, including Chapter 7.This section summarizes the entire dissertation. Based on empirical findings and the use of standard analytical methods, this dissertation makes relevant policy recommendations from an accounting policy formulation, regulation, standard guide and the implementation of accounting policies, etc. Accounting guidelines should be developed to reduce the arbitrariness of accounting policy choices, focusing on the process of accounting policy-making game. The accounting policy implementation should be subject to practical and rational standardization requirements, enhancing specification of readability and self-serving language of the annual report, and some guidance for investment behavior of investors. Hope to benefit to healthy development of China’s securities market.