Study On The Influence Of Ownership Structure On The Accounting Policy Choice Of Listed Companies

Corporate governance structure is based on the stock equity structure, which determines different corporate structure, decides different corporate governance structure, and finally decides the accounting and financial behavior as well as the performance of corporate. Stock equity structure of China's listed corporations is extremely special, which represents the non-tradable share's high proportion such as state-owned shares and corporate shares, high concentration of stock equity, complexity identities of shareholders, etc. The special and complex shareholding structure leads to complex motivation of accounting policy selection of corporations. It is of great theoretic and realistic significance to research the relationship between stock equity structure and accounting policy selection behavior. In this paper, aiming at a background of complex stock equity structure and universal profit manipulation by using the selection of accounting policy, the stock equity concentration degree, stock equity balance degree, stock equity mobility and the relationship between the stockholders'identity and the accounting policy selection of the listed corporations were studied from the angle of shareholding structure, and finally policy-related suggestions were given with the purpose of normalizing the accounting policy selection behavior of corporations to standardization.Firstly, the paper made a detailed review on the study of the motivation of accounting policy selection, economic effects, effects factors and the selection standpoint from the scholars at home and abroad. Through the review, deficiencies were found and research direction of this paper was proposed. Then, the influence on the accounting policy selection behavior from stock equity structure was discussed basing on contract theory, principal-agent theory, stakeholder theory and information economics theory.Secondly, combining with the background of property right system of China's listed corporations, the actuality of stock equity structure and accounting policy selection were analyzed, which established the foundation of applying western positive accounting theory into the practice of China's listed corporations.Thirdly, combining with the characteristics of China listed corporations'stock equity structure, this paper selected independent variables from four dimensionalities, which are stock equity concentration degree, stock equity balance degree, stock equity mobility and stock holders'identity, selected ACA, ACB and ACC , and which are based on the effect degree of profit under different selections of accounting policies, which are depreciation methods of fixed asset, pricing methods of inventory, amortization methods of low priced and easily worn article and assets impairment methods, etc, as dependent variables, which reflect the intensity of accounting policy selection. The paper selected 4, 713 listed corporations both in Shanghai and Shenzhen stock market as research sample from 2003 to 2007, by using ordered probit model to analyze the factors which influence the accounting policy selection. The study indicates that there was a significant negative correlation between the shareholding ratio of the first majority shareholder, stock equity balance and intensity of accounting policy selection, and there was a significant positive correlation between the shareholding ratio of the top five shareholders, the shareholding ratio of the managements and intensity of accounting policy selection.Finally, basing on the general law of stock equity structure's impact on the accounting policy selection, the paper inducted lifecycle phase and ultimate controller's type into the research of motivation and law between stock equity structure and accounting policy selection, reviewed the influence law of stock equity structure and accounting policy selection in the different lifecycle phases and different types of ultimate controllers. The research indicated that, there is a significant negative correlation between the stock equity balance degree and accounting policy selection intensity, which has a broad comparability degree on the accounting policy selection intensity with total samples, as well as corporations in growth stage and maturity stage, however the influence is augmented significantly when it comes to the decline stage. There is a significant positive correlation between the shareholding ratio of the first five shareholders and accounting policy selection intensity, which has a broad comparability degree on the accounting policy selection intensity with total samples, state-owned and state-controlled corporations, however the influence is augmented significantly when it comes to the private corporations.This paper based itself upon special stock equity structure of China, studied the influence law of stock equity concentration degree, stock equity balance degree, stock equity mobility and stock holders'identity on the accounting policy selection behavior. The paper provided experimental evidence for the western positive accounting theory in the application to the local research in China, and offered evidence to regulate accounting policy selection behavior, restrain the self-interest behavior of the management, and improve the accounting information quality of listed corporations.