The Effect Of Board Governance To The Reliability Of Operating Accruals

Recent 20 years,corporate governance is the most prosperous research of Western corporate financial research.Regardless in the corporate governance basic theory(the theory of the firm),or in the corporate governance mechanism,it both has achieved fruitful results;China,as a country which is restructuring economically and also a emerging market on,corporate governance has become a hot topic of discussions for the last 10 years.And board governance is the core of corporate governance. World-wide corporate governance movement has influenced and changed the face of board, so board composition and structure has changed a lot,meanwhile,increasingly stringent requirements have been given to the board.The board has to deal with and be in charge of increasing matters.In a word,board governance has become more and more important.The main content of this paper is which factors of the board governance will influence the reliability of operating accurals,it will be a further impact on he quality of accounting information by how to influence the reliability of operating accruals,and give advise on how to improve the board governance and then draw conclusions. Based on the perspective of related transactions,combined with the motivation of related transactions,the"hollowing out"and"efficiency",and the institutional background of board,to analyze the four factors of board governance,which means independence of board,leadership of board,audit committee and meeting frequency of board,how to effect the reliability of operating accruals between relations through the methods of combination of theoretical analysis (including economic theories: contract theory, agency theory and corporate governance theory and previous results obtained) and pratical research.In this paper,the assessment of reliability of operating accurals between relations is based on the related accounting,which means receivables , payables, advance payments and advances,and then combine the comprehensive evaluation of previous studies.Conclusions are drawn in this paper:leadership and meet frequency of board affect the reliability of operating accurals significantly,however, indepence and audit committee of board has little effect on the reliability of operating accurals.In the end, according to the research conclusion, advise about board governance is given:the construction and governance of board should be enhanced,in order to play a greater role .