Cost System Reform And Accounting Information Quality,Cost Stickiness

Enterprise product cost accounting is not only an important accounting work of enterprises,but also an important management activity of enterprises.The formulation of cost system is an important institutional arrangement to standardize and strengthen enterprise product cost accounting.From the 1950 s to the 1980 s,my country successively promulgated cost accounting systems such as the "Unified Cost Calculation Regulations for State-owned Industrial Enterprises" and the "Cost Accounting Measures for State-owned Industrial Enterprises".With the issuance of the "Enterprise Accounting System" in 2000,my country has also formulated 12 industry accounting methods to continuously standardize and improve enterprise cost accounting.The accounting standards implemented since 2007 also involve the content related to product cost in biological assets,inventories and construction contracts.In the past accounting standards and relevant regulations on cost accounting,there is a problem of "emphasizing accounting and ignoring management",cost accounting is relatively chaotic,and cost information lacks authenticity,comparability and continuity.The lack of a unified and authoritative cost accounting system has adverse effects on the internal management and external supervision of enterprises.These problems and deficiencies will not only lead to low quality of accounting information,but also seriously affect the sustainable development of enterprises.In order to ensure the authenticity and integrity of product cost information,improve the level of enterprise product cost management,improve the quality of enterprise accounting information and reduce costs,the Ministry of Finance of the People’s Republic of China promulgated the "Enterprise Product Cost Accounting System(Trial)"(Cai Kuai [2013] No.17)(in the following text referred to as the cost accounting system).This is not only a major reform of my country’s cost system,but also officially opened the prelude to my country’s promotion of management accounting reform based on cost accounting.The main changes and innovations in the cost accounting system this time are "combining management and calculation,and calculating as effective".The focus of cost accounting is no longer on accounting,but from the perspective of accounting,cost accounting is integrated with enterprise management activities.Improve cost management level,cost management efficiency and accounting information quality.Guarantee the authenticity and integrity of cost information,which can effectively improve the continuity and comparability of accounting;clarify the relevant definitions of cost and expense,ensure the accuracy of cost information,and reduce the cost accounting work.Possibility of reconciling accounting estimates and professional judgment."Open source and reduce expenditure" is a major issue for the survival and development of an enterprise,which is inseparable from high-quality cost management.From the perspectives of cost stickiness,accounting information quality,earnings management and investment efficiency,this paper takes the cost accounting system implemented on January 1,2014 as a quasi-natural experiment to test the effects of the implementation of the system on cost stickiness,accounting information comparability,The main research conclusions of earnings management and the impact of corporate investment efficiency are as follows:First,the cost accounting system and cost stickiness: This part examines the impact of the implementation of the cost accounting system on the cost stickiness of my country’s listed companies from the perspectives of agency issues,managers’ optimistic expectations and adjustment costs.The study found that the implementation of the cost accounting system significantly reduced the cost stickiness of listed companies;the path test found that in listed companies with serious agency problems,high managerial optimism and high adjustment costs,the implementation of the cost accounting system had an impact on cost stickiness.The inhibitory effect was more pronounced;after the relevant robustness tests were performed,the test results remained the same as before.Second,the comparability of the cost accounting system and accounting information:This part of the study found that the implementation of the cost accounting system unified and clarified the cost accounting standards,thus significantly enhancing the comparability of the accounting information of listed companies;the heterogeneity test found that,In listed companies with a poor legal environment and a low shareholding ratio of institutional investors,the implementation of the cost accounting system has a more significant effect on the comparability of accounting information;For large and medium-sized manufacturing enterprises,DID inspection and other methods,the inspection results are consistent with the previous ones.Third,cost accounting system and earnings management: This part studies the impact of cost accounting system on earnings management from the perspectives of optimizing corporate institutional environment,reducing agency problems and game theory.The study found that the implementation of the cost accounting system has effectively reduced the degree of accrual earnings management of listed companies;in the robustness test,tests such as replacing the accrual earnings management measurement indicators,retaining only large and medium-sized manufacturing enterprises,and DID regression were carried out.The conclusions remain the same.Fourth,cost accounting system and investment efficiency: This part studies the relationship between the implementation of cost accounting system and enterprise investment efficiency on the basis of accounting information comparability and earnings management.The investment efficiency of enterprises is increased,and the mechanism effect test shows that the quality of accounting information and the comparability of accounting information have a certain mediating effect in the impact of cost accounting system on the investment efficiency of enterprises.The heterogeneity test shows that for private enterprises,samples with more intense industry competition and higher information transparency,the implementation of the cost accounting system has a more obvious effect on improving the investment efficiency of enterprises.In conclusion,the research in this chapter provides further empirical evidence support for the "cost reduction and efficiency increase" effect of the cost accounting system.Possible innovations in this article:First,in academic theory.This paper uses the reduction of cost stickiness to measure the "cost reduction" of enterprises,and the increase of accounting information quality and investment efficiency to measure the "efficiency increase".Throughout the existing literature,there is no research on cost stickiness,comparability of accounting information,earnings management and enterprise investment efficiency in the implementation of cost accounting system.This paper effectively supplements the relevant literature on the implementation effect of the cost accounting system under the micro data,and provides a theoretical basis for scientifically and rigorously evaluating the policy role of the cost accounting system.Second,from an academic point of view.This paper provides a more scientific and reasonable evaluation method of the implementation effect of the cost accounting system.As a "quasi-natural experiment",the implementation of cost accounting system can avoid endogeneity problems to a certain extent.Cost accounting system is an important part of cost management,and cost stickiness is an important indicator to measure the cost efficiency of an enterprise.At present,there is still a lack of research on the relationship between the two.Using cost stickiness to measure "cost reduction" and accounting information comparability,earnings management,and corporate investment efficiency to measure "efficiency increase" broadens the research on the impact of the national macro-accounting system on micro-enterprise output and behavior in the context of China.Third,in practical application.Previous related research has mainly focused on exploring the changes in relevant regulations before and after the implementation of the system.Through empirical research,this paper evaluates the actual utility of the cost accounting system from the perspective of "reducing costs and increasing efficiency",which has certain practical guiding significance for the refinement of the cost accounting system by industry.High cost stickiness means that resources are not optimally allocated,which is a manifestation of high cost.The comparability of accounting information and earnings management,as the main measure of the quality of accounting information,will affect the decision-making of managers and the investment of investors,and cannot make the resources of the enterprise achieve a reasonable and efficient allocation.How to improve investment efficiency has always been an important topic of business management,and it is also a necessary prerequisite for promoting high-quality economic development in my country.Through the research of this paper,it is found that the implementation of the cost accounting system helps enterprises to effectively achieve the development goal of "reducing cost and increasing efficiency".It not only enriches the relevant theories,but also conducts a comprehensive and effective evaluation of the implementation of the cost accounting system.It has played a positive role in refining the cost accounting system in the next step and vigorously developing management accounting based on the cost accounting system.