The Influence Of The Relationship-resource On The Implementation Effect Of The Accounting Standards For Enterprises

In China, new accounting standard began to be implemented in the scope of the listedcompany from January1,2007. To some extent, this standard is similar to international financialreporting standards, but it doesn’t mean that the implementation of accounting standards isconvergence with the international. At home and abroad, there is some achievement on the studyof accounting standards implementation. The factors which affect the implementation ofaccounting standards are not only the internal cause, such as the standards themselves, acompany’s feature and how to manage a company, but many external factors would affect theaccounting as well. Currently, more and more non-institutional factor has attracted attention fromscholars, and among them, the influence of the relationship resources to the execution effect ofnew accounting standards is very big. This paper mainly discusses the effect betweenrelationship resource to implementation effect of accounting standard, so as to to be able toprovide some revelation on the implementation of principles in the future.The corporate relational resource is constituted by the relationship between businesses,governments and other organizations. This relational resource is also called corporate socialcapital. When the real earnings below the target of corporate expectation, the businesses whichunder the pressure of accounting standards, has to use the relational resource for earningsmanagement to relieve pressure. Thus, the accruals quality of financial reporting will beaffected, and the implementation of accounting standards will also be affected. By the review ofthe related literature review, this paper give a brief overview on the problems between therelation resource and the accounting standard for business enterprises implement effect. Andthen it selects the126companies’ data which are published by “China EnterpriseCompetitiveness Report”, and select entrepreneur’s relationship with the government, socialnetwork capital of the organization, the organization’s unique relationship capital as theexplanatory variables of relational resource. Then we use the cross section of the amendedJones model to estimate the absolute value of handling accrued profits. We named the absolutevalue|DA|, and use|DA|to measure accrued quality and implementation of the accountingstandards. It’s proved the impact of relational resource on accounting standards implementationby case study. The results show that the greater the enterprise use the relation resources ofentrepreneurs and government, organization’s social network capital, and the organization’sunique relationship capital, the worse the accrual quality of financial reporting will be, thus theimplementation of accounting standards will be worse as well.