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Positive Accounting And Accounting Choice Issues Of China's Listed Company: A Statistical Perspective

Posted on:2005-03-12Degree:DoctorType:Dissertation
Country:ChinaCandidate:F Q GongFull Text:PDF
GTID:1116360152483205Subject:Statistics
Abstract/Summary:PDF Full Text Request
This paper deals with positive accounting and the accounting choice issues of China's listed company from the viewpoint of statistics. It consists of six chapters.Chapter One offers a brief description of the development of positive accounting theory. It stresses the importance of understanding two key concepts, i. e. the concept of "contracting costs" and the notion of accounting methods as part of efficient organizational technology.Chapter Two discusses the methodology of positive accounting research, mainly it is about how to make a right use of statistics. Population and sample, data collection and the election of variables and properly understanding of simple hypothesis, etc. are all dealt with in detail. It is fairly to say that the whole discussion in this chapter is both creative and suggestive for practical purposes. A good grasp of it will help the reader to follow the next three chapters.Chapter Three concerns about the theory of the accounting choice. It makes clear that the logic route of assumption-hypothesis-positive analysis is the only correct way any solid positive accounting research should follow. It also offers clear definitions for both the concepts of efficiency and opportunism and therefore it goes further into the three frequently tested positive accounting hypotheses, i.e. the bonus plan hypothesis, the debt/equity hypothesis, and the political cost hypothesis. Accidentally, the relationship between smoothing corporate annual earnings time series and earnings bath or housecleaning by the management has been touched in a professional way. The literature so far has tended to state that each of these hypotheses as managers behaving opportunistically, however, we can also try to investigate managers' intention of disclosing financial information to the outsiders in the perspective of efficiency background. This chapter provides an example to show how to conduct this kind of new research which is both interesting and constructive.Chapter Four is devoted to the choice of depreciation alternatives of China's listed company through a bi-variate discrete regression model, which is the first attempt to conduct such a study in China. By drawing all those into his random sample that are listed on the Shanghai and Shenzhen securities markets (except the ST's), the author gets 923 companies. Y is supposed to be the 0-1 dependent variable that assumes 1 if the company adopting straight line method of depreciation and assumes 0 if the company adopting accelerated method of depreciation, while X1, X2 and X3 to be the three control variables. X1 stands for the total assets, X2 for debt ratio, and X3 is a dummy variable that assumes 0 if the company is under the control of the equity owners and assumes 1 if the management runs the company as such. The conclusion of this study is that no matter what kind of depreciation methods is used, there is no relation among Y, X1, X2 and X3 in terms of the listed companies in China. This is somewhatnot normal and something should be done to urge the company to produce true and relevant accounting data. Multivariate discrete regression issues are also discussed by quoting a US case, but we make tremendous effort to highlight the underlying ideas of the Generalized Linear Model, which was first touched by Nelder and Wedderburn in 1972.Chapter Five concerns the impact of the combination of accounting methods upon profit earned by the listed companies of China. Inventory pricing, depreciation method and bad debt provisions are studied through six samples drawn from China's two stock markets, three of which consist of 82 companies and the other three consist of 88. Several findings have shown themselves by descriptive statistical tables, for example, all the companies favour the straight line method of depreciation, most of which adopt weighted average method for inventory pricing, and bad debts are prepared according to a pre-described ratio, say, 3-5‰provision of the accounts receivable. Only a few companies have got the right way of making provisions for the possible bad...
Keywords/Search Tags:Statistical
PDF Full Text Request
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