Assessment Of Accounting Regulation Effects In Monopoly Industry

The whole world witnessed the tremendous achievements of Chinese economy. However, monopoly industries contributed less than competitive industries. The monopoly industries lag development while the corresponding regulation regime is heavily criticized. How to break monopoly and set up appropriate regulation regime is not only concerned by the public but also the central leadership. It is beyond all doubt that deregulation is the coming trend. But deregulation is not equal to abdicating regulation. It means rational regulation instead. The prerequisite of rational regulation is to clearly define the main body and object of regulation.In addition, the scope of and specific function of regulation must also be determined. As is known by all, only by assessing the performance of existing regulation regime can the defects be revealed. Moreover, accounting regulation plays a major role in regulation regime. Therefore, this thesis mainly focuses on the assessment of accounting regulation in monopoly industries in order to improve the assessment of monopoly industry regulation as well as enlarge the research range of accounting regulation.In order to define the effects of accounting regulation in monopoly industries, this thesis firstly explain the concept of monopoly industry and accounting regulation etc. Secondly, this thesis describes the existing accounting regulation regime in three aspects——government regulation, certificated public accountant regulation and corporate governance regulation. Thirdly, this thesis assesses the effects of accounting regulation in monopoly industries based on the empirical evidences from Chinese capital market and regulation data disclosed by government. Fourthly, this thesis discusses about the existing problems in accounting regulation regime from the assessment result. At last, this thesis gives some advice to improve the accounting regulation in monopoly industries. This thesis includes six parts:The first part is the introduction. This part introduces the research background and significance and reviews literature at home and abroad with summaries. Then it explains the outline of the whole thesis as well as the research approaches used. Additionally, it shows the potential innovations and defects in the end.The second part is the theoretical basis of assessment of accounting regulation in monopoly industries. This part mainly defines the concepts in the thesis such as monopoly industries, accounting regulation and the assessment of regulation effects.The third part is the description of existing accounting regulation regime. This part mainly describes the accounting regulation regime from three aspects, government regulation, certificated public accountant regulation and corporate governance regulation.The fourth part is the assessments of accounting regulation in monopoly industries. Firstly, in order to assess the effects of corporate governance regulation, this part sets up empirical models based on data from Chinese capital market. The models take the quality of accounting information as explanatory variable and the factors influencing corporate governance as explanatory variables. Then it focuses on the correlation of between the quality of accounting information and those factors. Strong positive correlation is seen as effectiveness of regulation. Secondly, this part analyses the data of penalties of violation of policies from the government website to assess the regulation effects of government regulation. At last, this part combines the penalties data and audit opinions of monopoly companies to assess the regulation effect of certificated public accountants.The fifth part is the analysis of the problems of existing accounting regulation regime in monopoly industries. This part mainly analyses the problems from the three aspects:government regulation, certificated public account regulation and corporate governance regulation. The last part is the advice for improving the accounting regulation regime in monopoly industries. Based on the analysis in the fifth part and prior studies conducted by other scholars, this part gives some advice on how to improve the accounting regulation regime in monopoly industries.