Research On The Governance Characteristics Of Companies With Baleful Accounting Changes

The accounting policy change is one of the key points of empirical study of accountancy theory. But the research of Baleful accounting changes (BACs) in the countries of transformational economy is rare especially from the view of corporate governance. Therefore, this thesis uses the method of the theory analysis and empirical test to discuss the corporate governance characteristics of BACs in the listed company in countries of transformational economy, which is contributing to the theory of corporate governance and the policy suggestions in our country. The outline of corporate governance theory is depicted in chapter two, which is compound with the analysis of the state of listed companies in china. In the following chapter three, the relationship between BACs and corporate governance is analyzed and the negative influence of corporate governance impressing on BACs is spotlighted.The second part of this paper is the body of empirical study. The sample companies with BACs during 1998-2002 in Shenzhen and Shanghai stock market are selected, then the univariate test and ANOVA method by the matching paired are chosen, finally the empirical test is made on the sample in the respect of corporate governance based on the consideration of the influence of contracting incentives.The result is consisted of the following three points. First, there exists positive correlations between the debt to assets ratio and policy-inducing BACs, and negative correlation between the reward contract of managers'salary affected by corporate performance and policy-inducing BACs ; second,ominant state-owned shares and the percentage of directors from control shareholders is positively related to BACs; third, modified audit opinion has some negative correlations with BACs. In this paper, aiming at the corporate governance, accountancy audit principles and the laws and regulations, the proposals are given base on the theoretic analysis and empirical results from the respect of information quality of accountancy.