The Empirical Study On The Relationship Between Accounting Policy Choice And Managers’ Characteristics

Accounting policy selection is a kind of behavior that the enterprise accountingentity chooses in the accounting policy, so it is purposeful. As a representative of theenterprise, that the managers choose different accounting policy will produce differentaccounting information. In turn, it will lead to different interest distribution and thedecision-making behavior between various interest groups. Therefore, the managers’decision has a significant impact for the strategy formulation and development direction.This article draws on domestic and foreign scholars’ related work about the study on therelationship between managers’ characteristics and the accounting policy choice toanalyze and research this subject of public company in China.First of all, define the concepts of the accounting policy choice and the managers’feature and investigate the correlation between these two variables using the propertyrights theory, principal-agent theory, stakeholder theory and information asymmetrytheory. At last put forward the research hypotheses: female managers’ accountingpolicies are more steady than male managers; managers’ accounting policies are steadyand conservative when they are old, have high degree, hold the additional post ofdirectors and have great experience advantage; managers’ accounting policies areradical when they work for a long time and have great professional background.Then, on the basis of prior theoretical analysis, select the data of the2012Shanghaiand Shenzhen A-share manufacturing-listed enterprise as study samples and establishesregression model. Build up the regression analysis model and define every factor whichthe model need.Finally, carry on the empirical study of their relationship. The results of the studyshow that the managers’ gender, age, tenure, professional background, additional postdirectors and experience advantage have significant impact on accounting policy choice.Perhaps because measurement is not accurate, the effect of academic background is notsignificant. On the basis of analyzing the empirical results, this article puts forwardconstructive suggestions and opinions for supervising managers’ accounting policychoices from the enterprise level.