An Empiircal Study Of Ownership Structure On The Impact Of Accounitng Conservatism In China’s Listed Companies

Accounting conservatism was manifested as not overvalued assets andunderestimated liabilities. It is one important quality of accounting information. Thehigh quality of accounting information is solidly, the quality of accounting will beinfluenced by the sound corporate governance structure. Previous reaches haveconfirmed that the ownership structure will affect the quality of accountinginformation. Base on this research this paper will further explore the relationshipbetween accounting conservatism and ownership structure. Meanwhile, we analyzedthe impact of accounting conservatism because of the change of ownership structurein the split share structure reform stage.This paper selects A-share listed companies of 2007–2010 Shanghai andShenzhen for samples, using multiple regression analysis and factor analysis. Theempirical results show that the proportion of uncirculated state-owned shares andaccounting conservatism is negatively related to performance in some years. Theproportion of tradable shares and accounting conservatism is positively related.When the largest shareholder in the absolute control. The largest shareholderownership and accounting conservatism negative correlation. Compared tonon-state-owned shares, the largest shareholder of state-owned shares, loweraccounting conservatism. Compared to the monopoly industries, monopolisticcompetition and competitive industry ownership structure and accountingconservatism of the existence of significant correlation. Then this paper analysis thechanges of ownership structure cause by the split share structure reform and changes in ownership structure how to impact the accounting conservatism. This result showthat the companies have strong accounting conservatism when the ownershipstructure is relatively stable. But during the period of instability of ownershipstructure, whether the company’s overall accounting conservatism or the sensitivityof ownership structure work on the accounting conservatism have significantreduction. We believe that the listed companies have the lower accountingconservatism at the present stage. Listed companies should be strengthened concernfor the quality of accounting information.