Institutional Investors Heterogeneity With The Performance Of Listed Companies

The production and operation environment of companies are vastly changing because of technology development and increased demand, so the traditional costing methods can't show the bona fide cost correctly and provide accurate accounting information for evaluating profitability and making scientific decisions. Activity-based costing is a costing method which is based on activity. It corrects the problem that traditional costing methods make the costing information inaccurate because they assign the overhead allocation on an unitary base. Activity-based costing assigns overhead according to cost drivers and solves the problems of traditional costing methods completely. It's an unavoidable trend that traditional volume-based costing method changes into activity-based costing, so it has theoretical and practical significance that we research and implement activity-based costing.With the global economic integration and the acceleration of the internationalization of capital, China's enterprises are facing the challenge of advanced enterprises. In order to enhance their competitiveness and create an invincible position in the market environment, our companies must learn the advanced activity-based costing. Cost management is the key to improving the competitiveness of enterprises and activity-based costing provides a specific direction for cost management and has great advantage for company decision and cost control. Therefore, the implementation of activity-based costing is a problem which has to be solved immediately, this is also the purpose of this paper.This paper explains at first the background of choosing the topic, explains the development of activity-based costing theory in foreign nations and the research literatures of the activity-based costing in china. It is of great theoretical and practical significance to lead the activity-based costing into china and implement it.Secondly, the cost calculation objects and cost assignment base in the traditional costing methods are limited because of current production and operation environment, which results in distorted cost information and an negative impact on the enterprise. So this paper explains the effects and prospects of activity-based costing. It also explains the basic theories of ABC and analyzes the implementation practicality of ABC from the micro and macro environmental perspectives.Thirdly, It will design an accounting system according to the activity-based costing theory and analyze the case of HZ factory. The design of this accounting system contains the design of documents, accounts, account records and financial statements. So we can have a clear understanding about the difference between traditional costing and ABC. HZ factory makes accounting entries on the basis of economy transaction. Trough the case we know that activity-based costing can provide a specific direction for cost reduction, improve factory's cost management and strengthen the factory's competitiveness. In the end, It summarizes the main contents, points of view and shortcomings of the paper, and put forward suggestions for companies and future research directions.Besides, activity-based costing is an open system. We should research and improve the theories and practice of activity-based costing continuously with the development of society and technology.