The Empirical Study On The Relationship Between Audit Committee Characteristics Of Private Listed Companies And Earnings Quality

Nearly years, the private sector grew rapidly in China, it contributes to more than half China's GDP and becomes an important Part of socialist market economy. It's worth to research the relationship between Audit Committee characteristics and earnings quality.At first, the thesis probes into composition of Audit Committee characteristics including independence, specialty and diligency. Meanwhile, the meaning of earnings quality is introduced, and the relationship between Audit Committee characteristics and earnings quality is expatiated in theory.Then, some variables indicating Audit Committee 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 Audit Committee 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 Security. The research shows that the independence and specialty of Audit Committee characteristics have obvious effect on earnings quality. The improvement of Audit Committee characteristics will enhance the level of Committee governance and earnings quality. This proves the necessity and imperative of improving the Audit Committee governance and also supports some experience evidences about how to ameliorate the Audit Committee governance.Finally, the thesis advances some policy suggestions based on them and show its shortage in the research, propounding on the aspect which should be researched more in the future. In view of the empirical evidence, the thesis advances some policy suggestions including independence, motivation and diligency. From independence, the thesis holds that the listed companies should increase the proportion of independent directors, perfect the independent director system and find reasonable motivational methods; From specialty, the companies should raise the proportion of financial experts, and these experts should have the leadership and management ability; From diligency, the companies should improve the frequency of the meeting and improve the quality of the meeting, the meeting must be in the localization of target of prevention, not blindly afterwards talking about how to solve the problem. The end of the article gives us the summary and shows its shortage in the research, propounding on the aspect which should be researched more in the future.