Research On The Influence Of Party Organization Participation In Corporate Governance On Accounting Information Quality

The Capital markets can drive high-quality development of China's economy.As an important medium in the capital market,high-quality accounting information can guide capital to flow into high-quality companies and improve the efficiency of resource allocation in the capital market.At the same time,it can also protect the legitimate rights and interests of investors and maintain the sustainable and healthy development of the capital market.However,in recent years,for the purpose of refinancing,avoiding securities regulatory penalties,covering up insider trading and raising the company's stock price,listed companies will take a variety of means to commit financial fraud.These behaviors will seriously damage the decision-making usefulness of accounting information,disrupt the order of the sustainable and healthy development of China's capital market,and then hinder the high-quality development of the national economy.Therefore,exploring how to strengthen the construction of corporate accounting information quality governance mechanism and effectively improve the quality of corporate accounting information is not only related to the high-quality development of the company,but also has important significance for maintaining the healthy development of China's capital market and promoting the high-quality development of the economy.At present,the research on the factors affecting the quality of accounting information mainly focuses on enterprise characteristics,internal governance structure,management behavior characteristics,external supervision and system norms.Specific to the internal governance structure of the company is also mainly focused on the ownership structure,the characteristics of the board of directors,the board of supervisors,audit committee and internal control supervision and other aspects of the discussion.As an essential feature of modern enterprise system with Chinese characteristics,the party organization's participation in corporate governance is fundamentally different from the traditional western internal corporate governance mechanism.In fact,the academia is also very concerned about the party organization's participation in corporate governance related research topics.However,few studies systematically focus on the influence of party organization participation in corporate governance on accounting information quality from the perspective of accounting information quality characteristics.Based on this,from the perspective of accounting information quality characteristics,this paper analyzes and tests the influence of party organization participation in corporate governance on accounting information quality by taking A-share listed companies in Shanghai and Shenzhen from 2010 to 2019 as samples,combining information asymmetry theory,principal-agent theory and modern housekeeping theory.At the same time,the influence of managerial competence and economic policy uncertainty on the relationship between managerial competence and economic policy uncertainty is analyzed by combining high-order theory and contingency theory.The following conclusions are obtained:(1)Party organization's participation in corporate governance can significantly improve the reliability,relevance,robustness and timeliness of accounting information,but has no impact on the comparability of accounting information.The road test shows that the party organization's participation in corporate governance can improve the reliability,relevance,robustness and timeliness of accounting information by reducing the risk of corporate management and restraining the self-interested behavior of management.Further examination shows that the leadership system of "two-way entry and cross-appointment" of Party organizations has different influences on the quality of accounting information.The embedment of party organization members into the board of directors and the "cross-appointment" mode can significantly improve the reliability,relevance and robustness of accounting information,but has no influence on the timeliness of annual report disclosure.The embedment of party members into the board of supervisors and the management can significantly improve the reliability,relevance,robustness and timeliness of accounting information;Under different property rights,party organization's participation in corporate governance has different influence on accounting information with different quality characteristics.Party organization's participation in state-owned enterprise governance can significantly improve the reliability,robustness and relevance of accounting information,but has no significant influence on the timeliness of accounting information.The participation of party organizations in the governance of non-state-owned enterprises can significantly improve the reliability,timeliness and relevance of accounting information,but has no significant impact on accounting conservatism.(2)Management capability can strengthen the positive relationship between party organization participation in corporate governance and the reliability,relevance and robustness of accounting information,but has no effect on the positive relationship between Party organization participation in corporate governance and the timeliness of accounting information.Further examination found that,first of all,the management capacity of the party organization embedded in different governance structure and accounting information quality has a different impact on the relationship between;Secondly,the moderating effect of management capability on the relationship between party organization's participation in corporate governance and accounting information reliability,robustness and relevance is more significant in companies with higher internal control quality.Finally,the moderating effects of management competence on the relationship between party organization participation in corporate governance and the reliability,robustness and relevance of accounting information are different under different CEO background characteristics.The moderating effect of management ability on the party organization's participation in corporate governance and the reliability and correlation of accounting information is more significant in the enterprises with older CEO,higher education background,financial management background and no concurrent chairman.However,in the enterprises with older CEO,higher education background and financial management background,Management ability can strengthen the relationship between party organization participation in corporate governance and accounting information robustness.(3)Economic policy uncertainty will affect the relationship between party organization participation in corporate governance and accounting information quality Relationship.Economic policy uncertainty can strengthen the party organization's participation in corporate governance to promote the robustness,timeliness and relevance of accounting information,but the party organization's participation in corporate governance and economic policy uncertainty have a substitution effect on the reliability of accounting information,both can significantly improve the reliability of accounting information.Further tests show that,first,there are differences in the moderating effects of economic policy uncertainty on the relationship between the leadership system of "two-way entry and cross-tenure" and the quality of accounting information.To be specific,the economic policy uncertainty,the embedding of party organization in the board of directors,the board of supervisors and the "cross-serving" approach can inhibit earnings management and improve the reliability of accounting information,but do not affect the relationship between the embedding of party organization in the management and the reliability of accounting information.However,the uncertainty of economic policy can strengthen the relationship between the leadership system of "two-way entry and cross-appointment" and the robustness,timeliness and relevance of accounting information.Second,compared with the decrease and change degree of economic policy uncertainty,the influence of party organization participation in corporate governance on the reliability,robustness,timeliness and relevance of accounting information is more significant when economic policy uncertainty increases and changes degree is large.According to the above research conclusions,the innovation points of this paper are as follows:First,from the perspective of the reliability,relevance,robustness,comparability and timeliness of accounting information quality characteristics,combined with classical theory,in-depth analysis of the impact of party organization participation in corporate governance on the quality of accounting information,deepen the understanding of the effectiveness of party organization participation in corporate governance,enrich the relevant research in this field.Although there are literatures exploring the influence of party organization participation in corporate governance on the quality of corporate earnings information,they mainly focus on earnings management.Corporate earnings management activities mainly affect the reliability of accounting information,but the quality of accounting information has the quality characteristics of robustness,relevance,comparability and timeliness.Therefore,it is necessary to carry out a comprehensive and systematic study from the perspective of accounting information quality characteristics,in order to deepen the comprehensive understanding of the relationship between party organization participation in corporate governance and accounting information quality.Second,this paper focuses on answering the question of the effect of party organization participation in corporate governance on the quality of accounting information under the modern enterprise system,and uses the intermediary effect model to test the influence path from the two levels of corporate management risk and management self-interest behavior.Although some studies have examined the influence of party organization participation in corporate governance on earnings management,the specific path has not been discussed in detail.This paper analyzes and tests the corporate management risk and management self-interest,reveals the specific impact path of party organization participation in corporate governance on the quality of accounting information,and improves the research on the impact of Party organization participation in corporate governance on the quality of accounting information.Third,contingency theory believes that the company's business activities will be affected by internal factors and external environment.The influence of party organization's participation in corporate governance on the quality of accounting information will be influenced by the characteristics of management and external environment,considering that the management ability is a comprehensive reflection of the characteristics of management,and the uncertainty of economic policy is an important external environment characteristic faced by the company.Therefore,from the perspective of management capacity and economic policy uncertainty respectively,this paper analyzes and examines the difference in the impact of management capacity and economic policy uncertainty on the positive relationship between party organization participation in corporate governance and accounting information quality,which not only enrichis the related research on management capacity and economic policy uncertainty.It also provides empirical evidence for the difference in the effect of party organizations participating in corporate governance under different internal and external environment conditions of enterprises.