The Influence That The Reform Of Accounting Standards Made On Industry Capital Allocation Efficiency

The treasury department re-promulgated the enterprise accounting principles in February15,2006, which has been implemented in listed companies since January1st,2007. The reform of accounting standards was in order to meet the development of market economy in our country, and realize the convergence with the international accounting standards. Compared with the old accounting standards, the new criterion strengthen the regulation of the authenticity of accounting information, which improves the quality of accounting information and provides more real operation condition information of enterprise. And this will result in guiding the cash flow reasonably and promoting the efficiency of resource allocation. Meanwhile, the international convergence of accounting standards enhances the comparability between the accounting information that provided respectively by domestic company financial reports and international company financial reports. This may help investors make correct investment decisions and lead to a reasonable cash flow.As a system arrangement that has extensive economic consequences, whether does the improvement of the authenticity and comparability of information quality affect industry capital allocation efficiency? When factors like openness, financial institution support and government support are different in industry, whether there are differences existed in the effects that the reform made on industry capital allocation efficiency? There is little research to these problems. In order to fill the gaps in this field of research, this paper will focus on the correlation between the efficiency of capital allocation and the innovation of accounting standards, and have a deep study on whether there are differences existed in the effects that the reform made on industry capital allocation efficiency when factors like openness, financial institution support and government support are different in industry. Research in this paper is meaningful both in theory and practice.Based on teasing the mechanism that how the innovation of accounting standards affect capital allocation efficiency, this paper apply the analysis methods of econometric models and quantitative economics and combine the measures of qualitative analysis and quantitative analysis. First, make Jeffrey Wurgler (2000) model as the basis to test the industrial panel data of2003-2010years in Anhui province. Through evaluating the level of capital allocation efficiency in Anhui province before and after the implementation of new accounting standards, we analyze the influence that the innovation of accounting standards made on industry capital allocation efficiency. Second, establish the model of the influence that accounting standards reform made on industry capital allocation efficiency, which uses the industry capital allocation efficiency before and after the reform as explained variable and the reform of accounting standards as explanatory variable. Meanwhile, we add factors like industry openness, financial institution support and government support into the regression model to have a deep research in this field.The article is organized into seven parts:In the first part, we present the research background, research methods, the significance and the purpose of research. In addition, the research framework, some innovations and limitations are proposed, too.In the second part, we present the relevant academic research in this field at home and abroad.In the third part, we present the theoretical basis of our research.In the fourth part, we summarize the path of impact that accounting standards reform made on industrial capital allocation efficiency, and give hypotheses of the research.In the fifth part, we structure regression model.In the sixth part, we make the empirical analysis on the test results.In the end, we raise the research conclusion and suggestion.We had two innovation points. One is the particularity of the scope of the study. This study fills up the gap between the accounting standards reform and industry capital allocation efficiency, and focuses on the research of the macro industry level. This paper expands the study scope and application of accounting standards reform. The other is the particularity research perspective. Unlike other scholars who make research on the capital allocation efficiency from the finance perspective, we make our research from the view of accounting, to explore the relationship between accounting standards reform and capital allocation efficiency in macro industry level. It is a big expansion of research in this field.