Economic Analysis On Evolution Of Accounting Institution

This paper tries to use discuss the evolution of accounting institution, using institution change theory. Institution change theory is an important part of institutional economics, of which path dependence theory, state theory and ideological theory transcend the neoclassical economic theory and quantitive methods. The theory not only deals with the three difficult problems, such as Dynamic and irrational behavior and collective action, but also develops into a general theory framework of economic analysis method of institution change theory in new institutional economics. Accounting institution is a kind of economic institution. Since is a kind of economic institution, a general theoretical framework on economic analysis of accounting institutional evolution can be researched, which includes institutional supply and requirement, institutional equilibrium and disequilibrium, institutional change theory. The more economy develop, the more important the accounting institution is in market economy. The evolution of accounting institution plays more and more important role in development of economy. The questions can be deal with in the course of accounting institutional evolution, such as facing what kind of changes of policy environment in a country, experiencing what kind of information technology revolution era, assuming what risk of financial innovation, and improving personal accounting behavior and team effectiveness to adapt and promote the development and changes of economic environment. The process is just the same as a kind of economic institutional evolution, which keeps on breaking a present equilibrium into the unbalanced state and achieving a new equilibrium during continuous evolution, once and again, playing an important role to promote economy growth. Writer tries to use the institution change theory and historical analysis to find out the rule of accounting institutional evolution aiming to resolve the problems such as paths of finance, decision of capital structure and options of dividend distribution policy. Under market economic environment, the evolution of accounting institution will be compared in different history periods. And writer also tries to make some useful suggestions on accounting institutional evolution, and to reveal the rules on the market economic development, from the great historical events, the factors of economic ideology and economic theory, and the significant influence of accounting institution evolution.This paper emphasizes on economic systematically analysis in accounting institution evolution using the economic thoughts. According main accounting system characteristics in different historical period of accounting development, economic analysis and process of historical analysis will be implemented. As accounting institution is influenced by market economic factors in different historical period; at same time, accounting institution plays a positive role in promoting market economic growth. So the paper research the economic analysis on accounting institutional evolution on the basis of the different historical stages, including former market economy, developing market economy, and mature market economy.This paper is divided into seven chapters. Chapter1 is an introduce to the main contents, including description of the problem and significance of thesis research, and introduction of the economic analysis theory on accounting institutional evolution, making an overview of internal and external theoretical research and making preliminary evaluation. At last, the writer will describe the research purposes and ideas, the basic views and discourse structure, innovation and inadequacies of paper.Chapter2 discusses the theory and methods on evolution of institution of new institutional economics, searching an ordinary theoretical framework on economic analysis of accounting institutional evolution, and includes institutional supply and requirement, institutional equilibrium and disequilibrium, institutional change theory, and North's path dependence, state theory and ideological theory, and economic analysis methods and theory of accounting institutional evolution of institutional supply and requirement, institutional equilibrium and disequilibrium and institution change theory.Chapter3 mainly studies the origin of accounting institution before market economy times. and analyses the sprout and development of accounting institution from Ancient Egypt,Ancient Babylon to Medieval and Renaissance, introducing the important history events influence upon the accounting institutional evolution such as the Bible, Roma Laws, Scholasticism, Aristotle, the Ancient Greeks, and Renaissance, focusing on the analysis of accounting institutional evolution in Florentine Republic and Venetian Republic. Chapter4 analyses accounting institutional change in the age of market economy, and discusses influence of mercantilism on accounting institution development from the success of English East India Company in oceanic discovery times. At last, writer traces the history of the joint-stock trading company, in which the development of accounting institution should be influenced from the economic ideas of capitalism.Chapter5 mainly discusses the development of accounting institution during modern market economy age, that includes contraction theory, Risk portfolio theory,and the development of American financial institution that have an important influence on the evolution of accounting institution, in the cases of the American conglomerate and the leveraged–buyout(LBO) company.Chapter6 investigates modern economic theory and methods playing roles in development of accounting institutional evolution. First, quantitative analysis of economic theory and method is a theory basis of modern accounting institutional evolution; Second, The contract theory, dividends theory and leverage the theory promote the development of accounting institution; third, the accounting standard, as a important economic institution is influence by subprime mortgage crisis, and discuss economic analysis methods and theory of accounting institutional evolution of institutional supply and requirement, institutional equilibrium and disequilibrium and institution change theory.Chapter7 is conclusion of the dissertation. The chapter generalizes the basic characteristics and main conclusions of economic analysis of accounting institutional evolution, in order to evaluate the theoretical contributes, inadequacies and development prospects of the accounting institution change. At last, the writer tries to make some useful suggestions on accounting institutional evolution and institution change economic theory.