Research On Influencing Factors Of Accounting Conservatism Basic On Company Internal Governance

As the development of capital markets, accounting information quality as atransformer who conveys company’s development information to every benefit sidebecomes more and more important. Corporate governance is the coordination mechanismof the conflict of interest between stakeholders, and coordination procedure between thestakeholders will reflect on accounting information. While conservatism is the mostinfluential of measurement standard in the accounting standards and it is bound to beaffected by from all aspect of corporate governance. Because of the lack of externalmanagement timely and costly, so the effective internal management can promote prudentaccounting policy applicating, thus improving the reliability and transparency of financialinformation. Therefore, studies the influence factors of accounting conservatism basic oninternal governance have theoretical and realistic significance.Combining with the practical situation of our country, firstly, expounding theconception of internal governance in this thesis. Then, summarizing domestic and overseasresearch about influence factor of accounting conservatism, and on the basis of theoreticalanalysis of influence factors of accounting conservatism and measurement method, puttingforward the research hypothesis and adopting accrued-cash flow metric method. Lastly,extracting1197,1352, and1427listed company respectively as model to empiricallyresearch in static state (cross-section data) and dynamic state (panel data) by using SPSSand STATA.The conclusion of the thesis: according to the cross-section data, the controllingmanagers’ shareholding ratio decreased year by year, and the negative effect of controllingshareholders on the conservatism also decreases, but considering of time factor, managers’shareholding ratio do not influence accounting conservatism obviously. Whether it iscross-section data or panel data, higher equity balance degree means higher accountingconservatism. According to the panel data, higher ratio of managers’ shareholding meanslower accounting conservatism, but in the long term its effect to accounting conservatism does not pass the significance testing. In the view of characteristics of the board, whetheror not considering the factor of time, higher ratio of independent director and generalmanager and chairman in one role can increase accounting conservatism.In the end, offering a proposal to perfect the internal governance according to theconclusion of thesis, operator should synthetically consider three levels of internalgovernance’s effect to accounting conservatism, reduce the asymmetry of the informationbeing published, and establish efficient market rules.