Ownership Structure And Earnings Quality

Accounting earnings information has always been concerned by investors,creditors and other stakeholders. It is the base of investors, the base of stock market’sdevelopment and a booster of the market resource allocation’s effectiveness.Therefore, accounting earnings quality is a focus which current accounting theoristsand industrialists pay attention together. But research on what factors affect earningquality and how to improve it becomes more and more. Factors affecting earningsquality are both internal factors and external factors, such as the structure of thecompany government, the stockholder’s structure, dividend policy and audit opinion.I investigate earnings quality from the point of ownership structure.The article reviewed related research literature from the definition of earningsquality, evaluation of earnings quality and the affection of ownership structure onearnings quality. Then, the paper carried out theoretical analysis from ownershipstructure, earnings quality and the affection of ownership structure on earnings quality.And it outlined the basic situation of listed company in Shandong. Combed theoreticalanalysis, the article collected data of Shandong Province of listed company in2009,2010and2011.which constitutes two aspects from the stockholder’s concentrationdegree and the stockholder’s identity. The paper attempts to constructing an earningsquality evaluation system from truth, the cash earnings of security, stability, growthand profitability of earnings. this author chooses the factors analysis to could carry outthe objective weight as the dependent variable. Then the influence of ownershipstructures on earning quality is verified by regression model.The empirical studies have shown that the first major stockholder’s proportionand the earnings quality have relations as inverted “U”. Again examines influence ofthe stockholder’s identity to the earnings quality, discovers that the national stockproportion and the earnings quality have no significant position correlation,corporation stock proportion and the earnings quality have a position relation,circulation stock proportion and the earnings quality have a negative relation andsenior managers stock proportion and the earnings quality have a position correlation.