Research On The Choice Of Business Accounting Policies And Its Behaviors

The choice of accounting policies is an important factor affecting the quality of accounting information of business firms. In the theoretical and practical circles of such Western countries as the US, great importance is attached to the study of the choice of business accounting policies, which is regarded as a research focus by the dominant positive accounting. In China, the establishment of the socialist market economic system makes it necessary for firms to engage in the choice of accounting policies. And the accounting reform, which focuses on Accounting Standards for Business Enterprises and Accounting Regulations for Business Enterprises, has offered business firms the power of choice and considerable room for choice.By drawing on relevant theories of accounting policy choice and by relating to China's state-owned enterprises, esp. the actual choice of accounting policies by listed companies, the paper investigates the motivation underlying the accounting policy choice of listed companies and their behaviors, based on the incorporations of theoretical research with case study and of qualitative research with quantitative research.The characteristics and contributions of the paper lie in the facts that it examines, in a relatively comprehensive manner, the behaviors of listed companies concerning accounting policy choice, that it expounds on the specific practices and the reasons concerning the optimization of accounting policy choice behaviors of China's business firms, and that it presents, in particular, some views and suggestions regarding accounting choice behaviors of listed companies while exploring the improvement of the supervision system. Therefore, the paper offers some useful reference for the improvement of accounting information quality of China's firms.