The Study Of The Impact About Equity Restriction And Board Governance On Quality Of Accounting Information

Accounting information is the important basis for effective functioning of socio-economic, and authenticity is the most basic requirement for the quality of accounting information. The effective functioning of the socio-economic demand accounting information can reflect the objective facts. There are many serious problems of the economic operation in our country at present. For example, poor quality of assets, bad securities market development, high transaction costs and financing difficulties. These are closely related to the enterprise’s accounting information distortion. The consequence of the distortion of accounting information is very serious. So it has become an important field of accounting and finance in economics research and sincerely related to the accounting standards and investor protection.There are many problems of board governance exist in list company. For example, single source of member, unreasonable structure, lack of independence, limited function. These directly affect the rights and power of board in corporate governance. But the board’s ability of making decision still can represent its core position, so good board can play its role well in improving information quality.Equity balance environment will affect the implementation of company policies and system efficiency. In our country, power is highlighted and economy system is transferring. Due to the low level of capital market efficiency and supervision and the inadequate disclosure of information, the degree of ownership within the company may directly influence the Board governance efficiency. On one hand, governance is the main part of board. It works through both formal and informal institutional arrangements. Then satisfy client demands, company’s interests and the sustainable development. If the ownership is concentrated in company, the largest shareholder can be more effectively use resources, imply related policies and systems to make the board more effective, thereby helping improve the quality of accounting information. But on the other hand, the strength of the major share-holders may weaken the function of board.By using empirical methods to study China’s listed company ownership, board governance and the relationship between the quality of accounting information, the thesis is attempt to solve two problems: board governance works on improving accounting information quality or not; equity balance environment prompt this work or not. Then raise two hypotheses to related issues and use regression analysis to validate the hypothesis. Through empirical analysis, this paper is expected to draw the following conclusions: board governance have a significant effect on the quality of accounting information; balances environment strength this effect.Contribution of this paper is to test whether the Board governance of China’s listed companies enhance the quality of accounting information and balances environment strength this effect. The goal is to provide suggestion for board of director governance system and the development of corporate governance. At the end of the thesis, highlight the point again and make recommendation on regulatory and governance.