The Proportion Of The Largest Shareholder, The Nature Of Equity And The Quality Of Earnings

In today’s world, holding focus is a common feature of all countries in the world,and itis more and more obvious. There used to be about the analysis of the corporate governanceis based on decentralized equity structure study, but with the development of economy, theownership structure changes, a growing number of equity is controlled by a few people, andslowly a dominant structure is becoming more and more popular, previous researchconclusions being questioned. Although the first big shareholder in a holding position andplay the positive role of supervision to the management, to improve the company’sperformance, but the equity stake is too high can lead to serious imbalance, for small andmedium-sized shareholders violations, have adverse effects on firm performance. Bigshareholders governance behavior system research, and discuss the relationship betweenlarge shareholders and earnings quality, puts forward improvement scheme, is the inevitablechoice of perfecting market economy in our country.This article in order to illustrate the first big shareholders to the impact of earningsquality, the theoretical and empirical aspects are studied respectively. Largest shareholdershareholding and equity are two major elements of largest shareholder, from the two angles,the article summarizes the experience of forefathers’ research and the conclusion, carries onthe analysis from the theory level. Then, uses the basic earnings response coefficient model,measures the proportion of the first largest shareholder on the quality of the surplus, anddraws the conclusion:(1) the proportion of the first largest shareholder and the earningsquality show significant N relationship;(2) the equity properties have significant effect onearnings quality, the first big shareholders of State-owned shares of listed companies’earnings quality significantly below the first largest shareholder is a non-State-ownedshares of listed companies.