A Study On The Correlation Between Corporate Governance And Accounting Robustness Of Private Listed Companies

Accounting conservatism is an important principle of financial accounting applications,which can effectively reduce the information asymmetry between investors and managers.Since the separation of ownership and bring the information asymmetry, investors can only relyon the enterprise’s periodic reports and other published data to understand the business situation,financial situation, but whether these data published in the real business is conducive toinvestment those who make the right decisions on how to reduce information asymmetry, andit is closely related to the policies which managers adopt and the robustness of the accountingpolicies. However, in practice, investors can not accurately determine corporate policy, whichneeds to have a basis, as we all known an effective corporate governance can be a gooddecision for management oversight, a company with a sound corporate governance mechanismmust take prudent accounting policies, because if the company adopted a prudent accountingpolicy, the loss will promptly transmitted to the management and other governancemechanisms, and can identify the reasons for the loss of timely confirmation. In this wayinvestors can analyze corporate governance structure indirectly understand the accountingpolicies of enterprises, and therefore the study of corporate governance and accountingconservatism becomes very important.In recent years, although there are a lot of research for corporate governance andaccounting conservatism, but mostly as an example of all the listed companies, mainly to studythe majority state-owned listed companies, at present, private enterprise has become animportant force to promote China’s economic development, but academic study of privateenterprises is relatively small, so the paper focuses on private enterprise research.This paper mainly private listed companies2009-2012data sample study of privateenterprises, mainly Khan, Watts (2007) measure of annual accounting conservatism C-Scoremethod, this method is widely used in foreign countries, but in the domestic application much;Taking into account previous studies mainly affect one aspect of corporate governance toaccounting conservatism study, author from the broader corporate governance mechanism thatis external corporate governance perspective on both the analysis of accounting conservatism;while the use of SPSS software on the impact of corporate governance for all selected variablesusing factor analysis calculates the comprehensive management factor, and then analyze itsimpact on the accounting conservatism.Through nearly four years of private listed companies sample data analysis, theconclusions of the study are: a structural feature of the Board:1The Board of scale that thelarger the number, the more the board, and the private listed companies have a lower accountingconservatism; independent private listed companies. Although a positive correlation between the proportion of directors of corporate accounting conservatism, but not significantly,indicating that the independent directors did not play its due role;2Board behavior: the moretimes the annual board meeting, and the listed companies have a lower accountingconservatism; Chairman change more frequently, and the listed companies have a loweraccounting conservatism;3board control features: Chairman and CEO if a person as lowerprivate listed companies accounting conservatism, as if by a different person, then privatelisted companies to improve accounting conservatism; higher proportion of the largestshareholder, and the listed companies have a lower accounting conservatism;4externalgovernance structure: if the company hired eight domestic firms, then after eight auditedcorporate accounting conservatism than the eight largest non-audit business accountingconservatism high; has political relations of private listed companies is lower than withoutpolitical relations of private listed companies accounting conservatism.