How Do Economic Consequences Influence The Setting Pattern Of Accounting Standards In China

The setting pattern of accounting standards has always been an important topic people focus on because it is the basis of the quality of accounting rules as well as the accounting information. With the development of market economy in China, different parties care more about their own interest than ever before. The deep changes of the society make it inevitable to face the economic consequences of accounting standards when deciding how to set accounting standards. Then, what on earth are the economic consequences of accounting standards? What kind of role do they play during the development of accounting standard-setting? What are the characteristics of the accounting standards'economic consequences in China, and how do they come into being? How do these economic consequences influence the development of setting pattern of accounting standards in China? These questions provide an essential framework for the dissertation.The beginning is an introduction. I explained why I chose to make this research and presented a general review on the research literatures related to the topic. Then, the paper's structure was given.More specially, the dissertation is arranged in three parts. Each part's content can be briefly summarized as follows:In part 1, I analyzed the relations between economic consequences and the setting pattern of accounting standards in a theoretic way. The setting of accounting standards is a kind of public choice, which just bases on the different economic consequences of different related parties may get from the accounting rules. Thus, as an inherent factor to change the setting pattern of accounting standards, the economic consequences play a very important role to move forward the development of accounting standard-setting.Part 2 discusses the economic consequences of Chinese accounting standards under the particular background of China. First of all, I illustrated the current statuses of different accounting standards-related parties and relations between them based on game theory. Through which, I concluded that the managements of listed corporations could easily control the disclosure of accounting information to meet their own financial purposes. By means of data analysis and Feltham-Ohlson value-relevance model, I proved that under the current regulation policies made by government, the insiders of corporations would manipulate the financial statements to get a higher price in IPO or gain...