Investors Cognitive Bias And Financial Reporting Transparency Impact Studies Taking Into Accrual Anomaly

Under China’s current system of background and capital market environment,the quality of accounting information and the cognitive level of investors has been the concern of researchers,due to poor quality of accounting information,the cognitive level of investors is low,so that investors may surplus which can not be properly accrual pricing may lead to accrual vision.Our article is based on a unique institutional context, the use of which may affect vision dollars generated normative and empirical research methods to examine and study the cognitive biases of investors and financial reporting transparency correspondence.Firstly,cognitive biases for investors, financial reporting transparency, accrued vision research literature has combed and analysis system,and then based on heuristic simplification theory, overconfidence theory, emotional and self-control theory,the theory of investor protection,financial reporting transparency theory,efficient market theory to explain accrual vision,a vision of a non-accrual efficient market theory to explain the theoretical basis of asymmetric information theory,cognitive biases affect investors accrual vision,transparency in financial reporting impact accrued vision,and cognitive biases of investors, financial reporting transparency corresponding account the effect of co-generated visions of a more systematic theoretical analysis and empirical research hypothesis put forward.In this theory,based on the analysis to the period2009-2011, China’s A-share listed companies as samples,selected listed company’s annual stock turnover of investor cognitive biases measure the degree of change to Bhattacharya et al (2003)proposed earnings smoothing model as an alternative variable transparency of financial reporting, using correlation analysis and simultaneous equation analysis examined and tested the cognitive biases of investors,transparency in financial reporting that may affect the corresponding total vision generated by the study found that the A-share listed companies in China market presence accrual policy vision,low transparency of financial reporting is the main reason accrued visions generated based on empirical analysis of the final results,proposed to increase the transparency of financial reporting,reduce investor cognitive biases to effectively govern accrual vision recommendations.