Research On The Accounting Policy Choice Based On The Corporate Governance

Stakeholder theory requires that all stakeholders should share ownership of the company, and should have clear rights to control the company and the get the earnings. As accounting policy choice of residual control rights should also belong to the stakeholders. Accounting policy choice is in the process of implementing, inside and outside the two mechanisms had a restriction on its role. Internal and external mechanisms put restriction on execution of accounting policy choice. Internal restriction is corporate governance structure, and external restriction is the benefit of stakeholders Committee. This article from the perspective of corporate governance, in-depth discussion on the relationship between corporate governance and accounting policy choice under different models of corporate governance and accounting policy choice of features, and TCL Group consolidated accounting policies selected for case studies. This article is divided into five parts:PartⅠ:Introduction. Choice of accounting policy is carried out in a certain corporate governance structure, degree of perfection of corporate governance have a significant impact on the accounting policy choice. According to the Department of Nankai University(NKU) governance Research Center published "China listed corporate governance index" shows over the years, companies acting high indices of enterprises, the accounting policy choices are fairly standard, and overall performance is better than the low index of enterprise. Documents literatures about accounting policy choice researched from the perspective of corporate governance are rarely seen. Therefore from a rich theory, practice based on the purpose of the guidance, in accordance with this article to case studies to literature review to theory analysis of countermeasures from the point of corporate governance, research on improving corporate governance, standardized accounting policy choice of methods. Combining TCL Group’s accounting policy selection case, dig the effect of corporate governance in the selection of accounting policy, raised practical problems. Then find the solution of the discovered problem—perfecting the corporate governance.PartⅡ:Basic theory of choice of accounting policy and corporate governance. Stakeholder theory for all stakeholders involved in company management, enjoy the results provide theoretical support for the development of the company. Stakeholder theory requires enterprises to fully consider the interests of all stakeholders, so enterprises at the time of accounting policy choice, its essence is in the coordination of all stakeholders in economic relations, highest goal is the interests of all stakeholders are met, achieving social and economic benefits. Accounting policy choice is as a residual control rights exists, attributed to common to all the stakeholders. Accounting policy choice of accounting standards do not improve, economic complexity of the business objective reasons, also Manager of opportunistic motivations lead to opportunistic type accounting policy choices, balancing the interests of all stakeholders leading to efficiency-type accounting policy choice, subjective reasons. Effect accounting policy select of company governance including has internal governance mechanism and external governance structure, its main mode has three species:British us external monitoring type, and de day internal monitoring type, and Korea Southeast Asia family monitoring type, under various mode company governance of Foundation and focus different, accounting policy select of effect (is damage enterprise development of opportunities type accounting policy select and conducive to enterprise of efficiency type accounting policy select occurs probability) also not the same.PartⅢ:Relationship between corporate governance and accounting policy choice. Choice of accounting policy in a certain context of corporate governance, there is the relationship between system and environment, corporate governance determines the choice of accounting policy of internal constraint constraint mechanism dynamics. All stakeholders under certain corporate governance structure for their respective interests of varying intensity of impact on the accounting policy choice, and choice of accounting policy of the company is the result of these interactions influence. External manifestations of accounting policy choice is implementation guidance for accounting, technology paradigm, it is actually important means of coordinating the various stakeholders in economic relations. How to assign right of choice of accounting policy, choice of accounting policy fair is an important component of improving corporate governance.PartⅣ:TCL Group merge merging accounting policy choice of TCL communication with its analysis of the situation of corporate governance. This article on equity method respectively and comparative analysis of enterprise merger under the purchase method, coupled with TCL Group’s corporate governance from various stakeholders point of merging accounting policy selection process and the final effect. TCL Group consolidated accounting policy choices are made in its corporate governance structure of game equilibrium structure of various stakeholders, corporate governance plays an important influence in the selection process.Part five:the full text of the summary, conclusions proposed. Corporate governance of listed companies in China at present there is some universality, concomitant problems, such as the ownership structure of the irrational, ineffective internal control, Board of supervisors, incentive mechanisms with little success. Corporate governance is one of the important influence factors of choice of accounting policy, the company governing perfection does not directly affect the choice of accounting policy fair, cause opportunism on the enterprise’s accounting policy selection in China-more likely, affect the objectivity, the usefulness of accounting information, is not conducive to market norms and economic development. Improving corporate governance structure for the choice of accounting policy fair has a direct role. Significantly, optimize the equity structure of property right of enterprises, establish effective incentive and restraint mechanisms, play a supervisory role of the Board of supervisors, these ways of improving corporate governance. You must have the corporate governance; enterprise’s accounting policy selection to more standardized, enterprise development, market prosperity will be more secure.This contribution of this article is:First, this article studies accounting policy choice from the perspective of corporate governance enriches corporate governance theory and the theory of accounting policy choice.Second, this article uses the case of TCL group’s accounting policy choice in merger to analyze the hot issues of mergers on the capital market in China recently, providing arguments for regulating the operation of listed companies, maintaining the market order, and improving market efficiency.Third, in a theory with case manner, on the improvement of corporate governance, improving the choice of accounting policy fair made feasible measures. These measures provide help for listed companies on improving corporate governance, and provide evaluation of listed companies’corporate governance and accounting policy choice for market at the same time.