The Structure Of The Board And Accounting Conservatism An Empirical Study

Board of Directors is the executive organ of power of enterprises, supervisethe management of enterprises, in the choice of accounting policy,themanagement will be affected. This article is in the independent director systemfrom home and abroad, Non-executive directors and the identification of researchexperience and research methods, based on the use of legal, accounting, auditing,economics and other disciplines related theories to Chinese market company asthe reference to independent directors, the directors Non-executive directors as themain perspective of the company to conduct a systematic study of sound. Basedon the current development of China’s actual conditions, combined withinternational development experience in developed countries, demonstrated in ourestablishment and improvement of the independent director system and directorsNon-executive directors of the necessity and feasibility. Whether or academictheorists a basic view is that the composition of the board is closely related withaccounting conservatism. As the professional interests of inside directors andmanagement are closely related, it is difficult to play a supervisory role, Non-executive of directors’ interests are not directly linked with the managers, and bythe "reputation" system constraints, which allows for effective management andsupervision. This paper selects the proportion of directors Non-executive directors,the proportion of independent directors set the robustness of the board structureand accounting empirical studies examine the correlation between board structureand stability of the relationship between accounting, with a view to optimize thesystem and to protect the interests of investors board of directors made a goodpolicy recommendations. Non-executive directors, the establishment ofindependent directors, for the daily operations of listed companies and financialoperation of a direct constraints.Accounting Conservatism in financial reporting is a very important principle,which the environment of accounting uncertainty by reflected. Robustness for thedevelopment of accounting theory and practice has far-reaching and significantimpact, the implementation of the principle of sound accounting reform hasbecome a prominent feature of the international standards. Based on the analysisprocess, the integrated use of the principal-agent theory, contract theory, asymmetric information theory to explain the robustness of the board structureand the related accounting theory and the relationship between the two. Inaddition, this paper describes the methods of mathematical statistics on boardstructure and stability of the status of the accounting analysis; and empiricalanalysis of the methods established by econometric models to examine therobustness of the board structure and relationship of accounting, and finallyreached the appropriate conclusions and policy recommendations.