The Process Of Marketization And Economic Consequences Of Accounting Standards

The nature of the process of marketization is a process of institutional change, which is a correlated system with the accounting standards. Therefore the market process is able to influence the economic consequences of accounting standards. The changes of the"Troubled Debt Restructuring"Standard provide an opportunity to prove the theory for us. We selected two sessions'(1998-1999, 2007) samples from listed enterprises who are debtors in debt restructurings. The four indicators (the decrease of government intervention, the development of the non-state-owned economy, financial markets advanced degree, market intermediaries and the improvement of the legal system) are used to describe the different aspects of the process of marketization. The empirical results show that: the four aspects of the market process impact debt restructuring earnings management significantly, but the impacts are inconsistent: to reduce government intervention and the development of non-state-owned economic enterprises to promote debt restructuring earnings management, and financial markets more developed, market intermediaries and the more perfect the legal system can inhibit the listed enterprises debt restructuring earnings management.