Analysis Of Institutional Investor And Accounting Information Quality Of Listed Company In China

In recent years, the proportion of institutional ownership is rising in the capital market of western developed country,. As one of the two largest investors in the capital market, institutional investors will gradually replace individual investors and play a more and more important role in the national economic life. Since the nineteen eighties, institutional shareholder activism has arisen. Scholars think that the growth of institutional investors has completely changed the company’s ownership structure, improved traditional corporate governance, become the most indispensable main force in the process of developed capital market construction and governance of Listed Companies. Institutional investors help mitigate conflict of interests between the major shareholders and the small shareholders of the company, implement the effective supervision of management, improve the economic benefits of investment projects, promote the company management and improve accounting information quality. Therefore, capital market is intensely calling for special and relatively mature institution investors into the corporate governance as they play a supervisory role. In the transition economy of China, with the development of capital market, the participating groups of the market have been constantly enriched, in the early nineteen nineties, institutional investors represented by mutual funds began to enter the Chinese securities market, after years of theoretical exploration and experimental work, institutional investors continue to develop, has now formed a various forms of organization, which influence the quality of accounting information through the internal constraint checks of other stakeholders and the external capital market appropriate actions. As an important external shareholders of the company, institutional investors have more professional skills and richer experience in analyzing information with respect to the individual investors, so they have more sufficient financial resources and human resources to affect the quality of accounting information of the company.Institutional investors functioned perfectly on capital market economy, brought capital ownership increasingly concentrated, and capital market the higher degree of maturity. Investment of institutions trend more obvious, this trend led to the theory of institutional investors concern. Listed company’s accounting information quality problems have become common, but the academic research circles for institutional investors to improve the information quality of listed company’s role has not yet been paid enough attention. The significance of this paper is as follows:1、In view of institutional investors on corporate governance of listed companies and the important role of information quality issue has attracted increasing attention, it is necessary to study the topics of China’s institutional investors affect accounting information quality. On these issues, conducting a comprehensive, systematic induction will help to deepen the Chinese institutional investors and the listed company’s accounting information quality awareness, so as to providing a useful reference for the development of the Chinese institutional investors and improving the quality of accounting information.2、 Institutional investors and the quality of accounting information as important components of corporate governance system, has not only a certain academic value, but also has high application value. Mature capital market development experience indicates that healthy and stable development of the market must have a strong, diversified institutional investors. The institutional investor has strong research strength and rich investment experience, and strong risk aversion ability, its development can effectively improve the capital market structure, plays an important role in the development.This paper is divided into five parts, the main content of each part of the research are as follows. The first part, introduces the research purpose of this paper, the research status at home and abroad, the research methods and research contents. The second part, elaborates the institutional investors and the accounting information quality of listed companies and the relevant concepts and theories, and discusses the listed company’s evaluation standard of accounting information quality. Also analyzes how the institutional investors influence the Chinese Listed companies’ accounting information quality, and mainly analysis from the corporate governance mechanism defect and external audit environment defect on the view of institutional investors.The third part, discusses the main problems of Chinese Listed Companies’ accounting information quality. The forth part, analyzes the reasons of the problems of the Chinese Listed companies’ accounting information quality, and mainly analysis from the corporate governance mechanism defect and external audit environment defect on the view of institutional investors.The fifth part, based on the previous analysis, puts forward relevant countermeasures and suggestions on how to improve the accounting information quality in listed companies by promoting the institutional investors’.