An Empirical Study Between Company Reputation And Financial Reporting Quality

With the prosperous development of China’s capital market，Due to the imperfecteconomic system, market regulation, adverse factors such as imperfect mechanism forestablishing reputation in our country, the part confined to the immediate interests of listedcompanies in our country, in order to achieve the company’s expectations, frequent use offinancial restatement, abuse of earnings management, such as illegal means to adjust theforeign financial report, the serious influence the quality of financial reporting, These behaviordisturbed the normal order of capital market in China, to bring serious harm to the health of themarket economy development in our country so many scholars began to research in this field.Special attention in the study of company’s reputation, Results show that the company’sreputation as an informal institution can restrict the behavior of the company’s management,the specification has very big effect to the normal order of capital market. Therefore theauthor concludes that company’s reputation has positive effect on financial reporting quality,and accordingly puts forward hypothesis, choose the "fortune"(Chinese version) fortune500companies as sample, industry measurement company reputation, a list of selected financialrestatement and maneuverability accrued profit two indicators to measure quality of financialreporting. Using logistic regression models such as descriptive statistical analysis andregression analysis to verify the hypothesis in this paper.Explained the empirical results show that variables of financial restatement company’sreputation and maneuverability accrued profits are significant negative correlation, so as tovalidate the hypothesis of this article, company’s reputation has a positive influence onfinancial reporting quality, high reputation of the company provided by the financial reportingquality is high, In this paper, in order to ensure the reliability of the conclusion, change thereputation of the measurement method and extended the research samples robustness tests, isstill the same conclusion, therefore, this article research has certain practical significance, andhope that this article conclusion can provide theory for the establishment of reputationmechanism in our country, to maintain the healthy development of the market economy in ourcountry to provide some help.