An Empirical Study Of The Influence Of Private Listed Companies’ Internal Governance Structure On Accounting Information Disclosure Quality

The quality of accounting information disclosure is closely related with internal governance structure. Internal governance structure is an internal control mechanism in which shareholders, board of directors and supervisors play important roles. Many countries focused on the corporate governance structure when they sought ways to protect the authenticity of information. And scholars also did empirical researches from the perspective of corporate governance to find the factors that influence the accounting information disclosure quality.Private companies have made a significant contribution to the development of China’s economics. With the number of private listed companies increasing rapidly, high quality of accounting information disclosure will make the Private listed companies good images in the capital market.Basing on the principal-agent theory, by using methods of normative analysis and empirical method, this paper discusses how the internal governance structure affects the quality of accounting information disclosure. Data source is the CSMAR database related with private listed companies of Small and Medium Enterprise Board.Conclusions of this paper are as follows:(1) in the whole sample regression, the ownership concentration doesn’t affect accounting information disclosure quality significantly. But the influence of the ownership concentration on the quality of accounting information disclosure begins to be different by distinguishing the control manner that the actual controller controls the listed company. When controlled by approach of pyramid or multiple ownership, Ownership Concentration and accounting information have a not significant negative correlation; when actual controller have a direct ownership of the listed company, ownership concentration and quality of accounting information disclosure show a not significant positive correlation. Equity restriction ration doesn’t affect accounting information quality significantly. However, its influence on the quality of accounting information disclosure begins to be different by distinguishing the control manner that the actual controller controls the listed company. Under the control manner of pyramid or multiple ownership, Equity restriction ration (T1/T2-10) makes not significant negative influence on the quality of accounting information disclosure. That is to say, the lower the balance, and the lower the quality of accounting information disclosure. Equity restriction ration has positive influence on the quality of accounting information disclosure at the 10% level of significance. Control and Cash-flow rights and the separation rate of the two don’t affect the quality of accounting information disclosure significantly. (2)The influence of board size and independent directors’proportion on the quality of accounting information disclosure is not significant. But their influence on the quality of accounting information disclosure begins to be different by distinguishing the control manner that the actual controller controls the listed company. Under the control manner of pyramid or multiple ownership, they both have positive influence on the quality of accounting information disclosure, though not significantly. When actual controller control private listed company by the direct way, they have negative influence on the quality of accounting information disclosure, though not significantly. CEO duality is negatively related to the quality of accounting information disclosure significantly. (3) Firm size and the quality of accounting information disclosure have a significant positive correlation; financial leverage and accounting information quality disclosure are negatively correlated at a significant level; Net assets profit margin and the quality of accounting information disclosure are significantly correlated in a positive way.Based on the empirical conclusions of this paper, are there policy recommendations as follows:(1) As high ownership concentration generally for the Small and Medium Enterprise Board Private listed companies, we had better focus on those listed companies which controlled by the actual controller through the way of pyramid or multiple ownership. Put emphasis on institutional investors’ role of enhancing the quality of accounting information disclosure on the capital market. (2) Board size and proportion of independent directors can be determined basing on the methods that the actual controller controls the listed company. Strengthen qualifications and diligence obligations of independent directors by professional training. Recommend listed companies to reduce the CEO duality phenomenon. (3) Focus on those private listed companies with higher financial leverage (except for some special industries with high financial leverage necessarily).There are six chapters:Chapter One:Introduction. It includes research background, research significance, research ideas, and the paper structure, research methods.Chapter Two:Literature Review. Review of the literature written by Chinese and foreigners that related to the subject of this paper.Chapter Three:Theoretical Analysis. Define important concepts of this paper (private listed company, internal governance structure, quality of accounting information disclosure). Ownership structures, board of directors are considered as internal governance structure in this paper. The grade of the quality of accounting information disclosure evaluated by Shenzhen Stock Exchange is considered an alternative variable of the quality of accounting information disclosure.Chapter Four:Current situation analysis. This chapter analyzes the influence of private listed companies’internal governance structure on the quality of accounting information disclosure by the normative method.Chapter Five:Analyzing the influence of private listed companies’internal governance structure on the quality of accounting information disclosure by empirical studies which includes descriptive statistical analysis and logistic regression by SPSS Statistics software.Chapter Six:Conclusions and recommendations. According to empirical results, give proposals of improving the quality of accounting information disclosure from aspects of ownership structure and the board.The main contributions of this paper are:(1) Research innovation. Domestic scholars focus on issues of corporate governance of state owned listed companies with "internal control" by lack of ownership, and the "dominance" caused by the split share structure.There are few literary works related to private listed companies in this field. (2)Give a detailed and targeted research by adopting cases of private listed companies of the Small and Medium Enterprise Board (3) Using the latest data. Select data of 2005-2009 private listed companies of Small and Medium Enterprise Board as samples of regression analysis.