Study On Governmental Regulation Of Accounting Market Based On The Changing System

Since the international financial crisis in2008, the controversy of accounting market and the effective regulation of it has continued. Important issues, such as accounting standards, corporate governance and internal control, has caused the attention of global accounting academics, practitioners and regulators. In addition, with a growing number of enterprises listed in the US in the past two years, the problem of financial fraud has been more serious, especially the Chinese company that is listed by the important way of reverse takeover (RTO) has become the more challenged objects. Indeed, lack of effective supervision from Sino-US regulators on cross-border RTO listing companies is one of the most important reasons. So it is foreseeable that to strengthen the international cooperation of accounting regulation is an inevitable trend. Also, from a domestic perspective, China has taken place in the field of international convergence of accounting standards, internal control and corporate governance in recent years, causing widespread concern in academia and practice circle. Based on the background of institutional changes and coupled with its role in the environment of enterprise management and information technology, regulatory theory and policy of governmental regulation of accounting market has naturally become the focus of common study.This thesis firstly defines the connotation of accounting market and governmental regulation of accounting market, and tries to find the theory of the motivation for governmental regulation of accounting market, thus to build the theoretical basis of governmental regulation of accounting market. Then regarding the positive interaction between institutional change of accounting standards, internal control norms and code of corporate governance and governmental regulation of accounting market as the main line of logic, this thesis refines the connotation of governmental regulation of accounting market based on the changing system. Secondly the course of development of China’s governmental regulation of accounting market and the current regulatory system are described. Then the thesis focuses on analyzing the defects of China’s governmental regulation of accounting market. Finally against the defects of governmental regulation and based on the changing system, the thesis emphasizes to build the basic framework and operational mechanism of governmental regulation of accounting market in order to improve the efficiency and effectiveness of governmental regulation of accounting market.This thesis includes the following five parts:The first part is the introduction, which mainly illustrates the background, significance, research ideas and methods of the study, reviews extant literature at home and abroad, and makes relevant comments. Also it puts forward the main innovation of the thesis.The second part is the basis for further study of governmental regulation of accounting market based on the changing system. This part first focuses to define the connotation of accounting market in order to make the range of accounting market clear, and systematically illustrates the theory of governmental regulation of accounting market on the basis of Western classical regulatory theory, principal-agent theory and theory of institutional change. At the same time, the connotation of governmental regulation of accounting market is defined and the meaning of governmental regulation of accounting market based on the changing system is refined, which is the most important to the further study. Finally this part tries to explore the coordination and interaction of institutional change and governmental regulation of accounting market, elaborating the challenges and requirements for governmental regulation of accounting market against the institutional level change of accounting standards, internal control norms and code of corporate governance.The third part aims to describe the practice of governmental regulation of accounting market in our country. This part first makes a brief review of the historical evolution of governmental regulation of accounting market from three aspects of the production, disclosure and verification of accounting information, then the existing system of governmental regulation of accounting market is teased out. In the second place, this part questions the effectiveness of our country’s governmental regulation of accounting market, and makes a profound analysis of the defects of China’s governmental regulation of accounting market, such as the construction of laws and regulations not in a timely manner, the inadequate supervision of CPA auditing, neglecting the interaction with corporate governance and the lack of effective regulation of government regulators, which thus provides a realistic basis for the mode building of governmental regulation of accounting market on the background of institutional change.The fourth part focuses on the mode building of governmental regulation of accounting market on the basis of the changing system. Firstly this part starts from the target, the subject, the object, the principles and the means of governmental regulation of accounting market in order to systematically establish the basic framework of governmental regulation of accounting market in our country. Secondly under the guidance of the framework, combined with the background of the institutional change and against the analysis of the defects of our country’s governmental regulation of accounting market, this part designs comprehensive operation mechanism of governmental regulation of accounting market based on the changing system, including the dynamic correcting mechanism of laws and regulations, the guarantee mechanism of CPA auditing, the linkage mechanism of governmental regulation and corporate governance, and the re-regulation constraint mechanism of governmental regulation.The fifth part is the research findings of this thesis, which summarizes the conclusions of the previous parts and the final findings of governmental regulation of accounting market based on the changing system is extracted.