| Based on accounting theory, Watts and Zimmerman (1986) carried on empirical research of contracting incentive. The studies mainly involve three contracting incentive hypotheses—rewarding contract hypothesis, debt contract hypothesis and political cost hypothesis. Under this empirical research, the motivation of the company managers in their choice of accounting policy is highly concerned, and becomes one of the core contents of empirical research on accounting theory. In 2006, China promulgated the "Enterprise Accounting Standards", due to its unclear classification of financial assets, it probably became a new tool for the earning management of listed companies.This paper adopts both the method of theoretic analysis and empirical analysis.Motive of listed companies'accounting policy choice and its influence on disclosure of information.The thesis consists three parts. Firstly, introduces the concept of accounting policy selection, characteristics of accounting policy choice. According to the three contract hypotheses affecting accounting policy selection, we analyze reasons of accounting policy choice based on the condition of our country. Secondly, we analyze the listed companies' classification of financial assets into tradable financial assets and available-for-sale financial assets, in the year of 2009, as our research sample, and use probit regression model to test it. The conclusion drawn on the test shows that, (1) managers who hold more financial properties are inclined to divide more financial assets into available-for-sale class for acquiring more space for choice and earning management; (2) pay contract hypothesis and political cost hypothesis are validated, while the debt contract hypothesis has no significant effect. At last, this paper makes suggestion about the method for comprehensive income report in our country. |
