A Study On The Relationship Between Board Of Directors Characteristics And Quality Of Accounting Information Disclosure

In China’s capital market, the majority of investors are small and medium-sized investors.And accounting information is an important bridge to connect the listed companies and small and medium-sized investors. Therefore, the accounting information disclosure becomes increasingly important. But some listed companies have turned it into a digital game.Such as the accounting information fraud of WanFuShengKe recently. It leads to a large number of investors lost trust for accounting information disclosure of listed companies gradually. Such a crisis of confidence, not only harms the interests of investors, but also destroys the image of listed companies. Meanwhile, it also highlights the grim situation of China’s capital market in terms of information disclosure publicly. The current corporate governance system runs not smoothly and perfectly enough,which leads to the low quality of accounting information disclosure. In particular, the Board does not really play its decision-making and oversight functions, as an important part of corporate governance.It is high time to identifying the existing deficiencies of the Board of Directors and improving them.Only in this way can we solve the problem and raise the overall quality level of accounting information which corporations disclosure to the public.Using a sample of listed companies in Shenzhen A share main board between 2010 and 2012,the paper analyzes the correlation of the characteristics factors of the board of directors and the overall quality level of accounting information which corporations disclosure to the public in three aspects.They are Structural characteristics, behavior characteristics and stimulating characteristics.Firstly, the paper reviews and summarizes the research achievements in related fields.Secondly,the paper describes the related basic theory and analyzes the impact of board characteristics on the quality of accounting information disclosure.Thirdly,using the information disclosure rating results of China’s listed corporations provided by SZSE,the paper make an empirical research by the method of descriptive statistics, correlation analysis and ordered logistic regression analysis.Then the paper make a further analysis based on the empirical results.The empirical results show that the number of specialized committees, annual salary of the top three directors and shareholding of the board of directors have a significant positive correlation with the overall quality level of accounting information which corporations disclosure to the public. CEO duality has a significant negative correlation with the overall quality level of accounting information which corporations disclosure to the public. But several other characteristics of the board of directors (size, proportion of independent directors and meeting times) do not have a significant correlation with the overall quality level of accounting information which corporations disclosure to the public. Finally, this paper put forward some feasible suggestions based on the basic situation of China’s capital markets and listed companies after analyzing. In order to improve the system of the board of directors of listed companies and raise the overall quality level of accounting information which corporations disclosure to the public.