An Empirical Study Of The Relationship Between Controlling Shareholder And Accounting Earnings Quality

At present,accounting theory circle and practice circle pay attention to earnings quality together. Along with economic transformation of China, accounting earnings become increasingly indicators which are widely used. Recently,a series of financial cheat cases makes the problem of accounting earnings quality be increasingly prominent. After analyzing the major factors affecting accounting earnings,we find that the controlling shareholder plays an important role in the earnings management. Therefore,it is important to define earnings quality's meaning correctly, measure earnings quality appropriately and analyze the relationship between controlling shareholder and earnings quality.Under this background,this paper carries on the summary of the domestic and international research literature. This paper analyzes the characteristics of earnings quality and methods of measuring earnings quality from the perspective of decision-making.Therefore,this paper analyzes how the controlling shareholder impacts earnings quality. Then,this paper regards the listed companies of stock markets of Shanghai among 2006-2007 year as samples and carries on empirical study of the relationship between controlling shareholder and earnings quality. The characteristics of controlling shareholder include shareholding percentage, shareholding percentage of other shareholders, controlling shareholder'seats in the board of directors and as chairman of listed company, etc. Finally, this paper proposes some suggestions that are benefit to enhancing listed companies'earnings quality and the improvement of corporate governance and capital market.