Research On The Validity Of Governmental Accounting Regulation

The massive theoretical analysis and the experience evidence indicated that the accounting information quality's enhancement is not only helpful to reduce investor's information risk and decrease company's capital cost, but also beneficial to efficiency's improvement of the capital allocation. Bushman (2001) pointed out that the accounting information has the huge economic effect, mainly through three ways, including the guidance of investment, the strengthened corporate governance as well as reducing the information asymmetry. the high-quality accounting report system can effectively promote the achievements of economical movement. For a long time, in accounting field,"the accounting information"has been regarded as a final"the product"of accounting regulation system. From aspects of technology, economic consequence, system and so on, people are carrying on the exploration diligently. Whether accounting regulation is valid has also the major impact on the healthy development of capital market and the economic stability. In the process of economic development, the main function of accounting regulation system is to provide the standards of production and the disclosure of accounting information, and to prevent unsuitable behavior occurring. Accounting regulation system's development and the consummation is helpful in improving the accounting information's quality. By important role of high-quality accounting information, which can enhance the efficiency of corporate governance, promote enterprise's achievement and technology advancement, thus promotes efficiency of the market resources'allocation and the economic development. But not suitable accounting regulation is not useful in eliminating or reducing the malfunction of accounting information market, moreover it will possibly intensify this kind of malfunction. Not suitable accounting regulation will reduce the efficiency of accounting information market, harass and destruction entire accounting's territory order, simultaneously will also enlarge the decision-maker's uncertainty in corporate governance. In recent years, as a result of the accounting's scandals to international society's huge vibration, it initiates people to question the validity of accounting regulation widespread. Thus the demand of continual improvement of accounting regulation is pushed to the unprecedented altitude, 2008 financial crisis also caused various countries' government to reconsider the validity of accounting regulation. The validity of accounting regulation become currently a difficult problem which can be paid much attention to and studied by domestic and foreign new academic circle in system economic, politics, management science, legal science and so on.Because the non-equalization of production and the disclosure of accounting information is one of primary factors of initiating the principal-agent's conflict, completeness of contract, scientific decision-making, and the reduction of accounting information quality will further increase the probability which the bad conduct behavior occurs in corporate governance. In view of the special position and the function of accounting information in corporate governance, this dissertation attempts to change the research angle of accounting regulation to the final outcome of mechanism of corporate governance. This dissertation plans to examine the validity of governmental accounting regulation at the angle of corporate governance. In other word, through studying the relevance between the accounting information quality and the efficiency of corporate governance, this dissertation inspects the validity of accounting regulation. On the basis of accounting regulation's history and the intrinsic logical foundation, this dissertation creates"the corporate governance-oriented"theoretical framework of accounting regulation, and centers on this proposition to take the efficiency of corporate governance as the standard of examining the validity of accounting regulation. Finally, in order to enhance the validity of accounting regulation, this paper proposes the corresponding measures.This dissertation is divided into six chapters. Primary coverage of each chapter is as follows:The first chapter is an introduction. This chapter describes the background, main body, the significance of this research, as well as the research frame and the main innovation.The second chapter carries on the commentary on the related Literature and points out the research contribution and the insufficiency. The third chapter gives historical inspection and experience enlightenment of relation between accounting regulation and corporate governance. This part is mainly explained that accounting regulation and corporate governance have the inner, inalienable link by the international experience's historical inspection. It is not difficult to discover from the historical evolution of accounting regulation that accounting regulation is usually the special response to the economical event and the market. It developed with dealing with"the question of accounting"unceasingly. But what hides behind dealing with"the question of accounting"is to enhance the level of corporate governance.The fourth chapter Proposes that accounting regulation divides into the accounting information quality control, the accounting information disclosure control, the accountaing behavior control. Based on this, it is mentioned that the accounting information disclosure control and the market malfunction, the accounting information quality control and"function locking", accounting behavior control and the effective market's relations. by this,the necessity of accounting controls and intrinsic logic are explained.The fifth chapter is theoretical framework analysis of corporate governance-oriented accounting regulation. First, this chapter Carries on the analysis to accounting information's government role and separately elaborates historical contributions and the flaw of the classical regulation theory, such as"interest group","public interest","economical supervision","programming", and so on, which provides useful reference and inspires for this study. Based on above views, this dissertation proposes the idea of corporate governance-oriented accounting regulation and researches goal of corporate governance-oriented accounting regulation, content, criteria of evaluation, chief feature of effective regulation, and so on.The sixth chapter gives empirical test of accounting regulation's validity:the research hypothesis and index design. On the analysis of relation among accounting regulation,accounting information quality and efficiency of corparate governance, This chapter elaborates that the research angle of accounting regulation's validity,the substitution variable selection, the origin of data and the sample choice and so on.The seventh chapter gives result report of empirical research. This chapter constructs the model that accounting information contributes to the efficiency of corporate governance. Unifies main stage of accounting regulation's reform, this chapter finishes the empirical analysis on China's security market. Firstly, descriptive statistics of the variable is given in the model. Secondly, using the model which accounting information contributes to the efficiency of corporate governance, this chapter carries on comparative analysis on accounting regulation's reform in 2001, transformation of the accounting standards in 2006. It is discovered that accounting regulation's reform in 2001 obviously enhances, but the transformed accounting standards in 2006 actually obviously reduces the accounting information's the contribution to the efficiency of corporate governance.The eighth chapter indicates conclusions and policy recommendations. The results of empirical research showed that accounting regulation's reform in 2001 is effective, it improves the accounting information quality's contribution to the efficiency of corporate governance; But transformation of the accounting standards in 2006 have not achieved the expectative effect. Compared with 2000 and 2006, the accounting information quality's contribution to the efficiency of corporate governance drops obviously. This chapter draws several conclusions, simultaneously gives the corresponding policy recommendations.There are several innovations in this dissertation.Firstly,it is proposed that governmental accounting regulation should take the corporate governance-oriented. from the angle of view of the corporate governance,governmental accounting regulation theoretical and practical question is considerated.Secondly,this dissertation proposes the theoretical framework of"the trichotomy"of accounting regulation at the first time. This dissertation points out that accounting regulation's efficiency is due to three kinds of mechanisms with drive and restraint: (1) accounting information quality regulation; (2) accounting information disclosure regulation; (3) accounting behavior regulation. The author discusses separately above three mechanisms'contribution to enhance the efficiency of corporate governance. But it is speaking of validity of accounting regulation, regardless of the accounting information quality regulation, accounting information disclosure regulation or accounting behavior regulation, they are by no means isolated existence. But they depend on each other mutually, and promote mutually.Thirdly,by research commentary, the historical inspection as well as the logical relation between accounting information and corporate governance, this dissertation founds"the corporate governance-oriented"theoretical framework of accounting regulation and carries out innovative research from the goal, the content, validity of accounting regulation, criteria of evaluation and so on.Fourthly,this dissertation proposed the efficiency of corporate governance as judgment criteria of accounting regulation's validity at the first time. That is to say, the validity appraisal of accounting regulation may begin with accounting information quality's contribution to the efficiency of corporate governance. The author utilizes the model which the accounting information quality contributes to the efficiency of corporate governance and carries on empirical analysis separately in the entire sample, grouping by whether to gain, grouping by the level of accounting information's quality. Through studying the relations between the accounting information quality and the efficiency of corporate governance, The author inspects improvement degree of accounting information quality and further researches change tendency of the accounting information's contribution to the efficiency of corporate governance in order to appraise the effect of accounting regulation (for example, standard transformation, accounting legislative work, strengthened supervision and so on). Meanwhile, this dissertation provides empirical evidences for appraising the validity of accounting regulation. The author discovers that regardless of in the entire sample, grouping by whether to gain, grouping by the level of accounting information's quality, the empirical study statistically confirmed that accounting regulation's reform in 2001 obviously improves the accounting information quality and promotes the accounting information's contribution to the efficiency of corporate governance. But it has not been able to confirm statistically that transformation of the accounting standards in 2006 improves obviously the accounting information quality, instead reduces the accounting information's contribution to the efficiency of corporate governance.