The Effects Of Corporate Governance On Information Transparency

Nowadays the world economy is undergoing a rapid development. The more economic developed, the more important accounting is. Accurate and sufficient accounting information is the basis of rapid developing economic. The discretion of accounting information transparency determines the healthy and stability of capital market directly. It also determines the degree of protection of interests of investors. However, low transparency of accounting information in capital market keeps hurting the confidence of the investors. The financial crisis of southeast Asia in1997, low transparency of accounting information is considered to be the direct reason of this crisis. Early twenty-first century, Enron Corporation encounter bankruptcy which is the consequence of deceptive behaviors in accountancy. The discussion of Quality of accounting information was push up into a summit. Yin Guangxia exposed is a milestone, transparency of accounting information become the first topic in capital market. Financial fraudulent behavior come along frequently every year, financial information disclosure which is unstandardization, incomplete and untruthfulness damage the health of capital market seriously and hurts investors confidence. Meanwhile, same problem is running counter to fairness, openness and impartiality of capital market, it has a negative effect to our capital market especially the improvement of the system and the establishment of social credit system. Studies about transparency of accounting information should be put in a important place. Only if high quality of accounting information is provided, the capital market can back into a befitting place, and will develop healthily. Because of the special political environment and the structure of management of China, the goal of this paper is trying to find that how special internal governance structure of China’s listed companies effects accounting information transparency, and what kind of governance structure should be build to help improving accounting information quality.This paper is divided into two parts:theoretical analysis and empirical research. The first part is mainly about summary consolidation regarding overseas and domestic research status of accounting information transparency, carded the approach of this paper about accounting information transparency, and put forward the comprehend about accounting information transparency of this paper. Meanwhile preliminary discuss the influence factors of accounting information transparency and how these factors affect accounting information transparency. The second part first identifies the method of this article. I used self-built financial indicators to measure accounting information transparency:Earnings Aggressiveness and Earnings Smoothing are used to measure accounting information transparency in a short-term and long-term. Put forward a series of influence indicator about the corporate internal governance, using Primary Market Database from2008to2011. With the empirical method, I verified the effects of corporate internal governance factors on the accounting information transparency.This paper is divided into five parts:The Ⅰ parts is the introduction, which put forward the thought and framework of this research including background, significance, thought and framework, the main contributions of this paper.The Ⅱ part is literature review, which expatiate and summarize scholar’s researches and studies about accounting information transparency overseas and domestic. I also put forward some opinion about these researches.The Ⅲ part is research designs, which has confirmed the method of measuring accounting information transparency and propose hypotheses to explain rang and approach of sample data in this paper.The Ⅳ part is Empirical results and analysis, which use descriptive statistics, correlation analysis and regression analysis to research the degree of each internal governance index influencing accounting information transparency.The Ⅴ part is research summary, which propose the conclusion of this paper and comment the revelation and shortage to developing capital market in this paper.