The Empirical Study On The Relationship Between The Board Of Director Characteristics And Earnings Quality

Board of director is the core of corporate governance,also it is the knot between stockholder and manager.There is no doubt that board of director will effect earnings quality.The thesis probes into the relationship between board of director characteristics and earnings quality by empirical study.At first,the thesis probes into composition of board of director characteristics including scale,independence,motivation and behavior.Meanwhile,the meaning of earnings quality is introduced,and the relationship between board of director characteristics and earnings quality is expatiated in theory.Then,some variables indicating board of director characteristics are selected,and attributive variable (earnings quality) is measured by earnings quality integrated index.Based on the above,the thesis probes into the influence that the board of director characteristics bringing to the earnings quality through empirical evidence.Beginning with the analysis of the part factors,the thesis conducts the regression analysis about the listed companies in Shanghai and Shenzhen Security.The research shows that the independence and motivation of board of director characteristics have obvious effect on earnings quality.The improvement of board of director characteristics will enhance the level of board governance and earnings quality.This proves the necessity and imperative of improving the board of director governance and also supports some experience evidences about how to ameliorate the board of director governance. Finally, the thesis advances some policy suggestions based on them.