Research On The Relationship Between Controlling Shareholders’ Character And Earnings Quality In Listing Corporation

The healthy development of capital markets depends on the true and fair accounting information provided by listed companies, and accounting earnings is one of the important accounting information of listed companies to disclose. So it is particularly important to the sound development of China’s capital market by concerning about earnings quality of listed companies. There has a close relationship between controlling shareholders and earnings quality of listed companies in our country. Therefore, it has great significance to improve earnings quality by studying the relationship between the controlling shareholder and the earnings quality. Analyzing the reasons and putting forward the views of the corresponding.This article discusses the character of controlling shareholder and the earnings quality on the basis of the theory, and combine our country manufacturing industry with the actual situation of listing corporation. Based on the cross section data and an empirical analysis of panel data, select five variables of the controlling shareholder identity:the proportion of the first shareholder, the ability of other shareholders, the independent director proportion accounted for board seats and the controlling shareholder holds the post of the chairman or general manager to research. In the cross section data analysis, select870manufacturing listing corporation as samples, using the method of multiple regression analysis empirical to study. In the panel data analysis, select250manufacturing industry listing Corporation from2007to2011for5annual financial statements related data as sample in this paper.After empirical study reaches the following conclusions:Whether in the cross section data analysis or in the panel data analysis, controlling shareholders’ identity, the proportion of the first shareholder with earnings quality have significant negative correlation. In the cross section data analysis, the ability of other shareholders is positively related to the earnings quality. In the cross section data analysis, the proportion of independent directors and earnings quality seats under5%of the significance levels are related and in the panel data analysis is1%. In the panel data analysis, the controlling shareholder holds the post of the chairman or general manager through5%significant test, but in panel data does not pass.At last, according to the conclusions of this paper, puts forward some suggestions to improve the earnings quality of listing corporation.