Study On The Evaluation Of Accounting Information Quality Of Chinese Public Companies

Accounting information is very important to the effective operation of capitalmarkets and so is the financial statement as the carrier of accounting information. But it isdifficult for investors in our country to make correct securities investment decisions usingaccounting information disclosed in the financial statement, because of lack ofprofessional competence or doubt on the audit opinion. Scholars have carried outextensive research on the quality of accounting information, but most of the studies useabstract mathematical models to prove the authenticity of indicators of accountinginformation. It will be more helpful for investors to raise a more practical method todetermine the level of accounting quality of the Public Companies.This paper summarizes the results of previous studies on the evaluation of accountinginformation quality, and analysis the motivation, goals, objects of evaluation ofaccounting information quality. Then we construct a three-level multi-index evaluationsystem from three dimensions which are audit quality, content quality of financialreporting and disclosure quality of accounting information. On this basis, we use AnalyticHierarchy Process to scientifically determine the relative weight of each level indicatorand unify each index score with Range transformation method, so we can get a final scorefor quality of accounting information. Finally, we use the system to test the accountinginformation quality for non-financial companies listed in Shanghai and Shenzhen StockExchange. The outcome proves the effectiveness of the system.