Correlation Analysis Among Government Control, Market Environment And Accounting Standards Executive Efficiency

Improving the quality of accounting information depends not only on the accounting reform that establishes the high quality accounting standards, but also on the accounting standards executive support system as a result of the reform of accounting executive mechanism. When perfecting the system of accounting standards, we must pay attention to the implementation of the guidelines, and the key lies in the implementation of accounting standards construction, in a sense, the implementation of the guidelines is more difficult than standards itself.In recent years, our accounting system is increasingly perfect, but we still in the economic transition period, the degree of marketization are not high enough, the government is still plays an important role in the market economy and accounting standards executive efficiency problem appears day by day.The academic study of the implementation of accounting standards is relatively less; most of the scholars in different periods mainly analyzes the accounting problems from different angles, slightly relates to the implementation of accounting standards issues, but also achieved some valuable conclusions. The implementation of accounting standards are relatively largely influenced by the environment, our unique government control situation and market environment have become important factors affecting the implementation of accounting standards. About the impact of government control and market environment on the efficiency of accounting standards, research on interval is always chosen before2009. There is little comparative study that whether the "supervise the work of local state owned assets supervision measures" issued by the state owned assets supervision and Administration Commission in2011can regulate the intervention behavior of local government. This paper based on the government control and market environment perspective explores the impact of government control and market environment on accounting standards executive efficiency, puts forward suggestions for the government to supervise the state-owned enterprises, and enriches the theory that affects the accounting standards executive efficiency.This paper analyzes the relationship among government control, the market environment and the accounting standards accounting standards executive efficiency in theory, and draws the following conclusions:(1) in the in the listing Corporation whose ultimate controllers are governments at all levels, insider control phenomenon is obvious. Governments at all levels who not only own financing power, the right of investment and personnel administration, but also have dual identity of accounting standards and accounting standards executive, have not only the motivation but also the ability to make the listing corporation for their own social and political objectives, and then lead to accounting standards executive efficiency decreased. And in the Chinese securities market, governments at all levels have motivation and ability to social goals for its own internal to the control of the listing Corporation. To sum up, accounting standards executive efficiency is much lower in listing Corporation which the government control;(2) the listing Corporation’s market environment will also influence their accounting standards executive efficiency and there are significant differences in all parts of the country about the degree of Marketization which have an impact on the behavior of local enterprises. The enterprise behavior is directly reflected national unity policies. And the degree of Marketization is not also simply determined by a rule or a single economic index, but also the comprehensive measure about a series of economic, social, legal and political system. Market environment is divided into the degree of Marketization, the government’s intervention level and the legal level in that area. If the degree of Marketization is much higher, the market in the economic life plays a more important role, accounting standards executive efficiency in the area is much higher. The government intervention would make the same accounting standards have different effects on the implementation and execution, and the enterprise’s financial behavior and disclosure and the quality of information provided by them must be different, and also this effect is usually negative. It is to say, the higher the level of government intervention, the lower the accounting standards executive efficiency. The higher the levels of regional legal, the stronger motivation outside investors have to get inside information. To some extent, it can reduce the asymmetric information problems, and can ease the principal-agent problem, thus listing Corporation in that area has higher pressure to better implement the accounting standards.Based on the above analysis, this paper adopts the method of empirical research to verify the theoretical results. We choose the data from2010-2012in Shanghai and Shenzhen A shares as the research sample, and systematically analyze the relationship among government control, market environment and accounting standards executive efficiency. The results show that:(1) accounting standards executive efficiency is much lower in listing Corporation which the government controls.(2) the market environment is better, the higher the accounting standards executive efficiency. Among them, if the degree of Marketization is much more higher, accounting standards executive efficiency in the area is much more higher; the higher the level of government intervention, the lower the accounting standards executive efficiency; the higher the level of regional legal in the district of the listing corporation, the higher accounting standards executive efficiency in the area. From above results, we can conclude that the results of theoretical analysis and empirical study are consistent.The basic structure of this paper is as follow:the first part is introduction, research background, purpose and significance as well as the framework of the article. The second part is literature review. The third part is the basic theoretical analysis among government control, the market environment and accounting standards executive efficiency based on the internal control theory, market efficiency theory and principal-agent theory to analyze their relationship. And then put forward four hypotheses. The fourth part is an empirical study of the relationship among government control, the market environment and accounting standards executive efficiency, through the establishment of regression model to test the hypothesis proposed in this paper. The fifth part is the conclusion that summarizes the empirical results and the limitations of the research, points out the further research direction, and puts forward the related policy suggestion.