Research On Relationship Between Internal Corporate Governance And Fuzzy Accounting Information

Financial Statement Fraud of Listed Companies is a deleterious cancer of security market. The quality of accounting information has become focus of the whole society. In fact, fuzzy accounting information result from the behavior that different interest groups measure gain and loss. Many domestic and overseas scholars analyzed the causes of fuzzy accounting information from multidimensional angle. 'Institutional reforge' become their concerned focus and corporate governance factor is the deep-seated reason of fuzzy accounting information. It is worth lucubrating the problem. We should make clear which kind of institution leads to fuzzy information and the effect of fuzzy information on corporate governance.Starting with the economy function of accounting information, this article concludes that fuzzy accounting information has bad effects on arranging of property, perfecting contract, improving supervisory and inspiring mechanism. Then it analyzes limitation of our corporate governance as well as points out that the absolute majority of national shareholding brings about ambiguous property right and lack of true owner. Most managers are pointed by government thus results in strong internal control. Master shareholder and general manager control board of directors therefore auditor committee becomes void. Internal supervisory institution is null while there is no sound inspiring mechanism. All these become institutional seedbed of fuzzy accounting information.It is complicated systems engineering to govern fuzzy accounting information while each factors of internal corporate governance are joys and sorrows correlated. It is invalid to learn the deep-seated reason of fuzzy accounting information with a single factor. We must comprehend it from a systemic view that is also a breakthrough of this article. Afteranalyzing their relationship we choose comprehensive indicators that presents internal corporate governance and fraudulent Listed Companies as research samples, then does logic regression on their relationship. It farther verifies our conclusion as well as benefit perfecting corporate governance and governing fuzzy accounting information.