Research On Nature Of Property Right & Wage And Accounting Conservatism

Accounting information is usually a numerical language that is used to reflect financial position, operating performance and cash flows of a company. By analyzing the number, the company’s stakeholders get the company information which is advantageous for them to make decisions, and then influences the effective allocation of resources and the efficiency of economy.In the generation and disclosure of enterprise accounting information, enterprise stakeholders game for their demand. The scholars should not only concern about the management layer, creditors who seem to be the most influential on the quality of accounting information and ignore another important stakeholder -- staff on the quality of accounting information. In addition, China is still in the throes of economic transition, the average income level of labor is far less than that of the developed countries, and the contradiction between supply and demand of the labor market is still serious. In such a background, studying the influence of employees and their compensation on accounting conservatism of Chinese enterprises, it is helpful to provide a fuller picture of accounting information and facilitate the enterprise management to better decision making.At first, this paper reviews the literatures about wage and accounting conservatism, and summarizes the definition, classification, measurement methods, the influence factors and economic consequences of accounting conservatism, and introduces relevant studies on employees and their compensation, then elaborates accounting conservatism economics theory. Then, on the basis of theoretical analysis, the paper puts forward the hypothesis of the relationship between wage and accounting conservatism, the relationship between rigidity characteristic of wage and the influence of the different nature of property rights, then constructs three corresponding empirical models. On this basis, the paper takes 2008-2011, Shanghai and Shenzhen manufacturing listed companies as a sample, and use their financial data to test. Results show that the enterprise whose financial report reflects the higher average wage of employees provides the higher degree of accounting conservatism; the accounting conservatism of enterprises with wage rigidity characteristics is stronger than that of those not; the influence of wage on accounting conservatism in state-owned enterprises is weaker than in non-state-owned enterprise. Finally, the paper puts forward research limitations and expects subsequent research.