Research On The Relationship Of Accounting Information Quality And Resource Allocation Efficiency

As a result of the specific behavior of economic principal parts, accounting information plays an increasingly important role in economic field. However, the occurrence of financial fraud cases among American famous enterprises in the early21st century such as Enron, WorldCom and Xerox, makes the quality of accounting information not only the American problems but also the worldwide ones due to the serious challenge. Chinese companies’quality of accounting information situation is more severe. Fraud and distortion of accounting information among listed companies in China caused the loss of investors and other stakeholders, and seriously impacted the effective allocation of social resources. In the modern economy, capital markets make a great difference, accounting information is the basis of investors who make decision in the stock markets, and has a direct impact on the capital market efficiency in resource allocation. Therefore, the research on the efficiency of resource allocation which the quality of accounting information decides has important theoretical significance and practical value.This dissertation combines the references on the quality of accounting information firstly, elaborating the mechanism by which the quality of accounting information determines the efficiency of resource allocation. Then it analyses the problems of the quality of accounting information in our current stock market. Moreover, after studying the status quo of the quality of accounting information in the nearest decade, it finds that the quality of accounting information is improved. This paper takes non-financial sector of Shenzhen A-share listed companies in2009and in2010as a study sample, by constructing a regression model and by using SPSS17.0statistical software for statistical description of the relevant variables and correlation and regression analysis, the dissertation proves the influence of accounting information quality in the capital market on the efficiency of resource allocation.The results show that, after the size and liquidity of stock market are controlled, there is a negative correlation between accounting information quality and efficiency of resource allocation and industries with high quality of accounting information work low efficiently in resource allocation in their corresponding capital markets. The Dissertation enriches the theories in accounting information economy and demonstrates the gaps between the industries on relocation of resources. What’s more, it analyses the reason of low efficiency in our capital markets.So that it make a certain contribution in improving the resource relocation efficiency and developing our capital markets.