Study Of Governance Environments, Agent Conflict Of The Controlling Shareholder And Accounting Conservatism

Recently, the fair value of measurement attribution has been questioned in economic circles as soon as the subprime mortgage crisis in the USA breaks out, and the financial crisis have being global expansion the conservatism of accounting principles have been attentted by the economy educational circles, especially attentted by the accountant educational circles's once again.In our country, the accounting system is constantly reinforced the requirements to the conservatism principle, but there is constant reports that some companies use the aggressive accounting methods to manipulate profits and even use the illegal means to obtain The excess of private benefits from the small and medium-sized of shareholders. The scholars have carried out the extensive, thorough research on the principle of conservatism in western countries, and have made a series of research results. However there is great difference about the economic system, the system environment between the domestic and foreign. As to the relatively perfect system of the Foreign, The development of China's securities market is still in transition, the capital market is not perfect, the degree of legal protection of investors is still low and there is existing significant difference of the Process of marketization in the different provinces.At the same time, there have highly concentrated ownership in our listed companies, and the ultimate control right have been Separation to the cash flow right owned by the ultimate controllers, which makes the foreign empirical conclusions cannot explain all kinds of strange things in the domestic.The study of the relation between the conflict of agent and accounting conservatism can deepen the driving forces of the accounting conservatism under the condition of the specific economic system and system environment in our country. This study also can provide empirical evidence that the ultimate controllers destroye the quality of accounting information in order to "tunning" and hollowed out the motives and consequences.This study will also help us to understand the supply of the conservatise accounting information of listed companies, which further provides the theoretical basis for protection the right of the external investors.Based on the concerning literatures, the author use a method combined the normaltive analysis and the empirical analysis to study the relation bewteen the conflict of agent on concentrated ownership structure and Accounting Conservatism. Specifically, This paper consists of the following questions:(1)the relation bewteen the agent-conflict of the controlling shareholders and small-sized shareholders and the accounting conservatism under the concentrated ownership structure.This question is mainly to explore Whether the cash flow rights and control right owned by the the controlling shareholder is destroy the Conservatism of the Accounting information? Moreover, under the different levels of control and the different ultimate controllers in nature the relation have difficult or not? (2) the impact of the agent-conflict bewteen the controlling shareholders and creditors to the accounting conservatism under the concentrated ownership structure.The questions concerned about the impact of the over-indebtedness to the accounting conservatism. On this basis, We will further analysis the influence that the relation of bank-enterprise, soft budget constraint have affect the relation between the over-indebtedness and the accounting conservatism or not? (3) the impact of governance environments on the accounting conservatism.In response to the above questions, this studies have draw the following conclusions:(1) when we studied the relation between the cash flow rights and the accounting conservatism by full sample we find the cash flow rights have no influence on the lever of firms' conservatism., while the conclusion have diffirent when We consider the interval effect of the control right.Third, the incentive of the cash flow rights on the accounting conservatism is also different under the different ultimate controllers in nature;(2)when we studied the relation between the degree of separation and the accounting conservatism by full sample we find the degree of separation have little influence on the lever of firms'conservatism., while the conclusion have diffirent when We consider the interval effect of the control right.Third, the incentive of the degree of separation on the accounting conservatism is also different under the different ultimate controllers in nature;(3) we study the relation betweet excess debt and the accounting conservatism,and The empirical results show:the excess debt have positive correlation on the firms' conservatism in general,but the extent of the influence have difficult on the condition of the different ultimate controllers, the relationship of bank-to-enterprise and the burden undertaked by the company.(4)In view of the different governance environments in different regions in China, we further studies the relationship between Investor Protection and the accounting conservatism.the empirical research results proved that the improvement of our governance environments makes the degree of the conservatism decline,which confirm there exist the Alternative relationship between Investor Protection and the stability.