Research On Relationship Between Accounting Standards Quality And Participation Degree Of Stakeholders

Many financial frauds at home and abroad have a tremendous influence on the capital market and lead to loss of social welfare. People begin to seek for the reasons from every aspect and the quality of accounting standards is questioned firstly. There are many factors affecting the quality of accounting standards, such as the setting procedure. A number of studies have proved that the setting of accounting standards has economic consequences. Much research proves that undue participation of some special stakeholders has negative effect on the standard quality. However the low degree of participation is also adverse to the standard quality.This thesis first analyses the nature of the accounting standard and states the implication of economic consequences at home and abroad, then discusses the relationship between standard quality and stakeholders'participation from two aspects. First this thesis analyses the relationship between the width of participation of stakeholders and the standard quality. Secondly it analyses the relationship between the depth of participation of one specific stakeholder and the standard quality. First conclusion is that the wider of the participation, the higher of the quality. Sufficient participation of stakeholders is the basic precondition of setting high quality standards. Second conclusion is that appropriate depth of participation of one specific stakeholder can improve the standard quality while undue participation can result in the standard quality to decrease.Finally according to the status quo of low degree participation of our country (both in width and in depth of participation) the thesis put forward several suggestions to improve the quality of accounting standards of our country. The conclusion of this thesis is also useful for enacting or correcting other economic institutions.