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The Research On The Relations Of Audit Committee Features And Quality Of Accounting Information Disclosure

Posted on:2012-10-23Degree:MasterType:Thesis
Country:ChinaCandidate:L ZhuFull Text:PDF
GTID:2249330368976630Subject:Financial management
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Accounting information is the main basis of investment decisions.Its quality plays an important role in market supervision and investment. But the frequent accounting frauds of listed companies bring investors great loss and destroy the economy gravely at home and abroad. Authorities have taken many kinds of actions to control the situation,one of which is the introduction of the Audit Committee System.So the China Securities Regulatory Commission and China Economic and Trade Commission promulgated"The Govern Standards of Listed companies"on Jan 7th,2002,which includes non-mandatory requirement for listed companies to establish an audit committee.According to the practice of some foreign countries such as America,this system’s establishment is beneficial to reinforce the company interior surveillance system,perfect the company management structure,alleviate the Information asymmetry and enhance the accounting information quality.In this context from the perspective of corporate governance, this thesis intends to research and argue about establishment and the specific features of the Chinese audit committee system and the quality of accounting information disclosure,thus to offer some referent advice and suggestions for the further development of the Chinese audit committee system.Chapter One is the introduction of the dissertation and offers the research significance,rational,method,present situation in such field.Chapter Two states the origin and definition of the quality of accounting information disclosure.firstly this chapter states details of the international developments of the audit committee.By frauds of some companies this chapter explores four stages of the establishment and development of the audit committee.Secondly this chapter analyzes the development of the audit committee in China.In order to reinforce the operation of listed companies and promote the development of the securities market,in our country relevant departments have issued the system of the audit committee.Lastly this thesis analyzes the function mechanism of the audit committee in improving the quality of accounting information disclosure in the point of view of corporate governance theory and principal agent theory and concludes that the size,independence,specialty and the activity of the audit committee is the footstone of its sufficient function.Chapter Three researches the oretically the function mechanism of the audit committee characteristics to the accountant information quality,pointing out that the audit committee system functions by surveillance,control,communication and report to consummate the company’s governance and improve the quality of accounting information disclosure.Then this paper argues that the independence if the most essential character of the effective function of the members of the audit committee;its specialty serves as the basic condition of improving the quality of accounting information disclosure;the activity is the necessary guarantee;a proper size is the important support of the efficiency of the audit committee.Chapter Four is the empirical study of the relativity about the establishment and the characteristics of the audit committee and the quality of accounting information disclosure,using the data of Chinese listed companies as the background.The basic approach is to analyze the multiple linear regressions by adopting the earnings radicals and the rating indexes in Shenzhen stocking market as the interpreted variables and the establishment and characteristics of the audit committee as the interpreting variables.After the empirical study,this chapter concludes that the listed companies which have established the audit committee are significantly positive correlated with the quality of accounting information disclosure;Independence is significantly in positive correlation with the quality of accounting information disclosure;professional is significantly in negative correlation with the quality of accounting information disclosure;Activity is significantly in positive correlation with the quality of accounting information disclosure.Chapter Five offers proper suggestions on how to construct the audit committee system in order to improve the accountant information quality in the levels of regulations and companies.First to build a comprehensive system of the audit committee;Then to clear the qualification of independent directors in the audit committee.Finally to establish sound systems of supervision and incentives.There are two aspects:one is to improve the information disclosure system of the audit committmm;the other is to improve the pay system of independent directors in the audit committee.Chapter Six is the shortcomings of the thesis. The shortcomings of this dissertation are mainly in three aspects.Since there is no compulsive requirements about the announcement statistics of the relevant audit committee’s characteristics,the data is very difficult to acquire,which impacts the research result of this paper and leads to the impossibility to further study the detail characters of the execution of the audit committee.In regards to the measure methods,this paper borrows the relevant research by using the information grading index of the listed companies in Shenzhen market without including the companies in Shanghai stocking market,which may impacts the research consequences.The audit committmm’s meetings are not disclosured compulsively,so this thesis uses the number of Board meetings to represent the audit committee’s meetings.
Keywords/Search Tags:Corporate governance, Audit Committee, Quality of accounting information disclosure, Multiple regression analysis
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