Discussion On The Distortion Of Accounting Information And Corporate Governance

The issue of the distorted accounting information has been aroused nation wide attention because of its disturbance of economic institution reform in China. However, the reason of the distorted accounting information is imperfection our corporate governance in a way.The distorted accounting information' prevention and accounting information quality' improvement is the rather complex and arduous systems engineering. The control of the distorted accounting information should be based on the reasons. Then, the perfect corporate governance is a good way to the distorted accounting information' prevention. Corporate governance includes interior supervising mechanism, exterior supervising mechanism and incentive mechanism. The author thinks it is an efficient system to actualize ESO to improvement of corporate governance structure.