Research On The Impact Of Listed Companies’Ownership Character On Accounting Conservatism

Along with the increasing development of economic globalization, the competitions of the economic market are more and more drastic. If the Chinese corporations want to win in this tough competition, we must bear the challenges and be ready for taking more chances, so the Chinese corporations must strengthen their competitive strength. Improving the quality of the accounting information and keeping the accounting conservatism is the most important way of strengthening the Chinese corporations’competitive strength. Accounting conservatism is a popular accounting principle accepted by the entire world, it is an important character of accounting report. This principle requires the company keeping cautious in affirming and measuring the incomes and assets, affirming the costs and the liabilities earlier and affirming the incomes latterly. Nowadays, the accounting conservatism of the listed companies needs to improve as soon as possible, if we want to enhance the accounting conservatism, we must have a good shareholding structure. The research on the impact of listed companies" ownership character on accounting conservatism will point a direction of enhancing the listed companies’ accounting conservatism, and it has an important practical significance of improving the quality of the listed companies’financial information.Through using the results of the study on the impact of listed companies’ ownership character on accounting conservatism from experts and scholars at home and abroad, the thesis has established the empirical research direction and method, defined the meanings of the equity structure and accounting conservatism, and discussed the specific classification of the equity structure. The thesis analyzes the relationship between equity structure and accounting conservatism on the basis of using the two basic theories of contract and information asymmetry. Based on the analysis of the present situation of the impact of Chinese listed companies’ownership character on accounting conservatism from three points about the equity structure, the share concentration and the ownership balance, the thesis has put forward the research hypotheses and formed an empirical research model. The research has mainly screened the annual data of836companies which are listed in Shenzhen and Shanghai Stock Exchange from2007to2011, makes an annual regression analysis of the sample data to verify the existence of the listed companies’accounting conservatism and the listed company ownership structure’s characteristics’influence to accounting conservatism by using OLS method. Through the study we have found that the accounting conservatism really exists in the screened listed companies, the accounting conservatism has negative correlation to the proportion of state-owned shares, the accounting conservatism has positive correlation to the proportion of legal person shares and current shares, the accounting conservatism has negative correlation to ownership concentration, and the accounting conservatism has positive correlation to ownership balance. The result of the research will provide the evidence of the listed company ownership structure’s characteristics’affection on the accounting conservatism. To optimize the listed companies’equity structure and improve the listed companies’ accounting conservatism, we should pay attention to the following aspects:reducing the proportion of state-owned shares, increasing the legal person share proportion and the public proportion, increasing the quantity of the big shareholders, improving the independent directors’independence and strengthening the securities market.