Change Of Institution And Quality Of Accounting Information--Empirical Study On Deviation Of Earnings Forecast Of China IPO

China has rapidly developed its economy. In order to guarantee the success of China economy, an efficient Capital market is the core. In 2001,market censorship has greatly changed, namely from risk controlling to risk showing. In fact the government formulate all kinds of standard, criterion and regulations that have formed the more complete system of information showing. But according to "The Opacity Index "report published by Price Waterhouse & Coopers in Jan. 2001, Opacity Index of china has some marked differences from other countries or districts. It's the time to test effective function of information showing of securities market. This study uses earning forecast as example to demonstrate how the role of financial regulation and accounting information play in china stock market and uses literature review and empirical methods for verifying established hypotheses.First, analyzing showing theory, exam theory and verifying theory about earning forecast to give the reasons why the China stock market demands in IPO market. This study reviews the related regulations, mainly discuses the properties of earning forecast in China market. On the basis of analysis the general of the change of institution lets people realize the fundamental theory the regulations published by government, I rearrange the institution relatively to the earning forecast and formulate the characteristic ready for the empirical researching.Then, this study uses empirical research, accord to the characteristic of change institution divide the institutions to time range and study the different former of time range, including 429 samples from 1996 to 2001. Selecting 30 IPO in every time range to paired verified the effect of change in institution on accounting information. By whole example, part example, definition of operating variables and applied statistical methods to include empirical result.Last, compares the requirements and regulations in relation to earning forecast among US, Taiwan area and China from forms, content, range and making corrections to suggest the express way to information showing adopts range instead of simple numeral; Improves office clerk quality and attaches importance to controlling before the event; takes earning quality ofIPO seriously and lightens motive to operating earning forecast in order to improve essentially information quality of earning forecast.