Emprical Research On The Impact Of Ownership Character On Accounting Conservatism On The View Of Contract Demands

As a corporate co-ordination mechanism for the parties to a conflict of interest, accounting conservatism can effectively lower the parties of the corporate to the contract agency costs. Therefore, China's capital market to improve accounting conservatism has its practical significance. Yet, The question is: Ownership Structure as the most direct target in contract pattern of various sectors, Its different characteristics whether or not lead to accounting conservatism change? The thesis use empirical research methods to reveal the impact of ownership character on accounting conservatism.Firstly, this paper describes company contract theory to analyse the impact of ownership character on accounting conservatism and then focus on concentration of ownership structure, the identity of the first shareholders, balance of ownership. Then, we study the impact of ownership character on accounting conservatism based on 2007 data of the listed companies in China. Empirical result shows: the accounting information shows higher accounting conservatism while the share proportion held by the first shareholder is lower. In separate analysis of the groups,the increasing of the state share proportion reduces accounting conservatism significantly.In the companies which the state share proportion is higher,the accounting information of the companies which the first shareholders are the state shows higher accounting conservatism than the companies which the first shareholders aren't the state.Finally, based on the conclusion of the theory and positive test, this paper points out that optimizing the structure of property rights of listed companies and establishing the market ties between banks and enterprises is contributive to increase the accounting conservatism of listed companies.