The Study, Based On Corporate Governance, Financial Accounting Information Problems

In light of the principles of information economics and institution economics, this article makes a detailed analysis of the relationship between corporate governance and financial accounting information under the framework of corporate governance, by taking into consideration the agency issues arising from the separation of the managers from the owners under the modern corporate environment in order to solve agency conflict and to realize right restricting and benefit grouping. The mechanism of financial accounting information is produced internally from the mechanism of corporate governance. On the basis of this understanding, this article discusses how financial accounting information works in both internal and external corporate governance mechanism, explores the application mechanism of financial accounting information associating with stock price and introduces the function of corporate governance to guarantee the quality of accounting information respectively, respectively paying particular emphasis on the two goals of financial accounting---the decision useful and the accountability approach. This article finally dwells on the issues of corporate governance and financial accounting information disclosure---an important aspect in the reform of companies in china, especially summarizes corporate governance constructions of listed company in China that exists in vertical arrangement and crosswise combination, and gives wholly and systematically some advises, such as: strong--flexibility corporate governance mechanism; corporate governance information system and double authority to supervise.