The Relevance Study Of Corporate Governance And Accounting Information Quality

Accounting information is a foundation of interest distribution and wealth shifting. It has function of coordinating interest distribution. Accounting information’s reliability directly decides the fair of economic system and the efficiency of economic development. Accounting information is a foundation of society good running, accounting information distortion surely brings huge perniciousness. However, at the present stage worldwide accounting scandals constantly exposured. For example, China’s "yin guang xia storm", American’s "enron affair". These accounting scandals firstly harmed investors’rights and benefits, secondly wavered investors’confidence. It had a strong impact on economic running’s effect. Due to the accounting for generating accounting information, the distortion of accounting information and the market’s benign operation, the social public rebukes. So, how to control the distortion of accounting information, and improve the quality of accounting information became practical and theoretical focus. Theorist analyzed accounting information distortion from macro-economic environment, enterprise property right structure, accountants’ profession ability and profession ethics, accounting standard and management, accounting supervision and system arrangement, and so on. Then tabled relevant proposals. Among those proposals, the most familiar proposal is improving the corporate governance structure.This is to say, scholars believed accounting information quality and corporate governance has interactive relation. Perfect corporate governance structure can improve accounting information quality, while accounting information quality also effect corporate governance. However, above conclusions was derived by normative research approach. Worldwide empirical research didn’t come to the coincident conclusion. Especially, China economy has transformation feature, above conclusion is or isn’t pervasive applicability, it lacked empirical support. This thesis used normative research approach and empirical research approach, reviewed relevance documents, induced theory foundation. This study proposed target.Then, this article collected 577 listed company samples from China capital market in 2001-2006.Finally, this article tested corporate governance how to effect accounting information by penal data model and had following conclusion:1. Agency costs influence of corporate governance and the quality of accounting information interaction, but in accounting limits and capital market effects are not the same. Generally speaking, the high cost of agent of the group company management accounting information quality is higher than the influence coefficient of low agency cost accounting information quality of corporate governance to influence coefficients. But, for different accounting information quality indicators, the influence of different groups, grouping for manipulating accruals, but not much influence on the credibility of surplus influences.2. The interaction between corporate governance and the accounting information quality is a dynamic process. Because the company management and accounting information quality is a multi-dimensional variables, so you can’t simply absolutely, corporate governance and the accounting information quality is a positive or negative correlation. From this data, accounting for corporate governance by can control the quality of accounting information and market from the accounting information quality reflects the relation direction is abhorrent, such as "committee", director of the salary and meetings of the board of supervisors, senior executive compensation, whether the shareholding, whether the auditor "four". In addition, by accounting for corporate governance can control the quality of accounting information and market reflect the influence on the quality of accounting information is different also, such as corporate governance of surplus variables influence coefficients far above the credibility of corporate governance of surplus credibility influence coefficients. Explain the accounting information quality in China’s capital markets has not been fully identification, many investors in market speculation composition.This innovation lies in:Firstly, the paper adopts the econometrics model is the latest achievements of panel data model, it is a kind of system model, and the empirical research in our country at present is widely used to create the return model or a linear regression model, the model is the typical section of variables, the data model of time is through the time as virtual variables into consideration, get back again. Compared with the cross-sectional data model, has the following advantages:one is the individual heterogeneity controlled individual heterogeneity. The panel data that individual, corporation, or states are different. Time series and section to control the heterogeneity research cannot get the results. Two is there more variables panel data information content of data, more variation variability, the less of linear collinearity, more and more freedom. But time sequence of research is always multiple linear. There is a panel data to better the dynamic analysis for adjusting adjustment dynamics. But looks relatively stable transverse distribution of hidden behind the change. Four is purely for the panel data in the data or pure time-series data observation data in better recognition and evaluation function. The panel data model is simple and the cross-section data or time series data model, the author compared to allow more complex structure and the inspection behavior model. Six is focused on individual, company and home of micro panel data on the macroscopic level than similar variables may be more accurate estimation.Secondly, this paper uses clustering analysis method, the sample companies into high agency cost and agent cost is low. Due to the existence of corporate governance and agency costs, and corporate governance and agency costs are multi-dimensional variables, some may cause ignore some main variables. While clustering analysis can control agent cost and corporate governance of endogenous variables and ignore related problems.Finally, the paper compared with similar research, the data of fixed number of year,2006 data from 2001-basically, covering the entire development of corporate governance in China. But domestic related research, general is 3 years. Data of fixed number of year, can avoid long time due to the reason of short and make conclusions have deviation, relatively speaking, the conclusion is more reliable and can better explain corporate governance effect the quality of accounting information quality.