Accounting Standards Analyzed Via New Institutional Economics

Coase and North most contribute to the development of new institutional economics. Atpresent, new institutional economics is having increasingly effect on the economics andsociology as well .By the way of traditional economics analysis ,it mainly studies theOrigin , function , changes and economic performance of the institution ,based on transactioncost and property theory etc..To some extent, new institutional economics develops with thedeep researches and study of transaction cost and property theory .It is one of major issues for accounting circles in China to study the essence andfunction of accounting standards. From the theory of accounting information to managementactivity theory, to transaction cost, etc., many scholars have made the researches on thisissue..In the perspective of the new institutional economics, accounting standards are seen andanalyzed, which will help us master the essence of accounting standards more extensively anddeeply., consequently benefit their formulation. This article chiefly analyzed the essence andfunction of accounting standards by new institutional economics ,for example ,transactioncost, property theory, etc.,mainly analyzed both supply and demand of accounting standardsvia related theories of institutional economics ,with the hope that accounting standards canbeen understood from various dimension.