A Research Of Economic Motives On Accounting Policy Selection By Listed Corporations

Accounting policy selection is considered to be one of the core contents of empirical research on accounting theory. With the introduction of contracts theory, accounting academics around the world have made significant studies on the subject. The studies mainly involve the three contract motive hypotheses—rewarding contract hypothesis, debt contract hypothesis and political cost hypothesis. Taking a late start of research on accounting policy selection, the empirical research has not formed a integrated system in China. With the deepened development of economic system reform, establishment of modem enterprise system and creation of capital market, necessity and possibility of accounting policy selection by listed corporations arise accordingly.This thesis studies the motive of accounting policy selection by listed corporations in China, combining theoretical analysis with empirical test.There are three parts consisted in the thesis. The first one is Introduction, which introduces the topic selecting motive, background of the research as well as the goal, acceptation and applied methods. Reference of documents at home and abroad constructs the background of descriptive statistical analysis and empirical test of the thesis.The second part introduces the concept of accounting policy selection, the inevitability of the issue and reviews the position for accounting policy selection. Presentation of the conceptual base includes the contract theory and the three contract hypotheses affecting accounting policy selection, which provides theoretical foundation for subsequent empirical test. The impairment empirical research, core of the thesis, exerts analysis on listed corporations in 2005 with mean value test, non parametric test and regression models. The conclusion drawn based on the result shows that different economic motives influence the selection of accounting policy. Listed corporations with motives of making up deficits, issuing shares and other marginal motives will take a lower rate of asset impairment provision. Corporations with deficits motives will take a higher rate instead. According to the result of regression analysis, political hypothesis and debt hypothesis in western countries do not work in China. Performance and asset quality of the listed corporations influence policy of impairment provision significantly.The third part serves as conclusion, introduces the related suggestions and limitations of the research, makes suggestions and presents the possible improvements based on the result of empirical research.