The Impact Of The Largest Shareholder To The Quality Of Accounting Information

China’s securities market is important in the global emerging stock market, it ismore than20years since Shenzhen and Shanghai stock market have opened. Thesystem is more better than before. But with the growing development of securitiesmarkets, some of the listed company’s accounting fraud, earnings management,accounting disclosure violations, largely reducing the quality of accounting information,severely affected the confidence of investors and hinder the stock market healthydevelopment. Many scholars believe that one of the factors causing this phenomenon isthe company’s ownership structure is not perfect, the largest shareholders plays a vitalrole in the company’s ownership structure, the largest shareholder is a close relations tothe quality of accounting information, so that, it is important practical significant thatthis article features the largest shareholder of the relationship with the quality ofaccounting information as the research content.They are2556samples of listed companies from Shenzhen Stock companies in2008-2010, they are all from annual report,using the SPSS17.0for research. the resultsshows: the percentage which the relative to the largest shareholder’s holding areassociated with the quality of accounting information; the percentage which the largestshareholder with no voting rights are negative correlation with the quality of accountinginformation; the largest shareholder of state-owned shares are positive correlation withthe quality of accounting information; the ratio of the four largest shareholders to thelargest shareholders is positive correlation with the quality of accounting information.In this article, the first Chapter,this section outlines the background, literaturereviews and theoretical basis of the study, including asymmetric information andprincipal-agent theory, and introduced the content of research papers and the approachto the study. The second Chapter is about China’s largest shareholder and the quality ofaccounting information. Specifically addressed the ownership structure, the nature ofequity,quality of accounting information and the Standard to measure the quality ofaccounting information.The third Chapter is the affact of largest shareholder to theaccounting information quality, mainly fromthree aspects, first, the affece of percentageof largest shareholder’s to the quality of accounting information; Second, the impact for the largest shareholder’s equity nature to the qulity of accounting information, third,and the affect of the ratio of the four largest shareholders to the largest shareholder tothe quality of accounting information. The fourth Chapter is the core of this article-empirical analysis. multiple linear regression model was constructed. Finally, theprevious paper based on the analysis, linear regression model of regression analysis andempirical results were summarized and analyzed.the fifth Chapter of Innovation andshortage.