Corporate Governance And The Quality Of Financial Reporting Of Listed Companies Research

At the beginning of 21st century, a great deal of malignant accounting scandals has been disclosed in both domestic and aboard capital markets, which impaired seriously the confidence of investors. Different governments all constitute corporate governance principles trying to ensure and improve financial reporting quality by optimizing corporate governance. In theory, corporate governance and financial reporting institution are designed to alleviate agency problems, and there exists inherent and necessary relationship between corporate governance and financial reporting quality. Based on practice of Chinese capital market, the thesis aims at exploring and studying the correlation between corporate governance and financial reporting quality, especially corporate governance factors' effect on financial reporting quality, to provide support for policy establishment for optimizing corporate governance and improving financial reporting quality.Firstly, the thesis dissertates theories that relate with corporate governance from the aspects of corporate governance connotation, principle, model etc, analyzes current corporate governance conditions of Chinese listed companies, and advances approach for corporate governance optimization. Secondly, I discuss the concept and evaluation viewpoint of financial report quality, design financial report quality evaluation model for Chinese listed companies, and emphasize that the reliability should be the most important index in accounting information quality characteristics in current.On the basis of theories discussed above and the practice of Chinese listed companies, I analyze particularly the correlation between corporate governance and financial reporting quality from two aspects. On one hand, I illuminate the acting way and proof of accounting information provided by financial report on different corporate governancemechanisms. On the other hand, I analyze and dissertate the acting principle of different corporate governance factors on financial report quality. To validate the research conclusions above, this thesis makes further empirical research on manufacture companies listed in Shanghai Stock Exchange by designing and employing logit model.I document a significant positive association between the proportion of independence director and financial reporting quality. I also find that the proportion of executive director and the proportion of director representing the chief shareholder all exhibit a significant and negative association with financial reporting quality, while the factor of ownership structure shows no significant association with it. In the end, according to the empirical results, I put forward corresponding advices for policy establishment in order to optimize corporate governance and improve financial reporting quality.