The Study Of The External Self-serving Attribution In China’s Textile Industry

The Performance attribution of business is the reason for changes in interpretation. The performance of external self-serving attribution is the nature of the Company’s management based on performance, due to the direction of the destination attributed to external manipulation and distortion due to the direction of behavior. Selfishness has been attributed to behavior in our Annual Information Disclosure common language, it has become one of the important means to manipulate the annual language information management. In this paper, cotton volatility as background of this research. Cotton price fluctuations of annual reports of listed companies textile language information is prevalent performance external self-serving attribution behavior and performance of the company due to the degree of relationship.China’s cotton prices have been in a state of fluctuation. There has been a substantial rise in prices from 2010 to 2013 cotton prices are still at a high level. Number of enterprises in China’s textile industry has been among the top in the country in 2011 before the three above-scale industries, but in 2012 and 2013 has dawn to the sixth place, a significant reduction in the number of enterprises. The profit growth also declined in trend. The rise of cotton prices has brought a negative fluctuations to China’s textile industry.In order to study the existence of self-interest and differences of external attribution behavior, this paper select 39 companies Annual Report in the textile industry from 2009 to 2013 total of 195 study samples, the main language information to determine the annual disclosure Attribution content analysis words. Through the 195 samples of words attributed to collate, statistics, analysis and found 195 only two samples with no external self-serving attribution behavior, 193 samples the presence of external self-serving attribution operations to illustrate the performance of China’s textile industry listed prevalent external self-serving attribution behavior.In this study, mainly adopts content analysis as our research method and annual reports of Chinese public companies as our sample. Whether in the language of the annual report information obvious external self-serving attribution behavior. Confirmed in the textile industry of the listed companies are widespread external self-serving attribution behavior, on the basis of analysis of textile industry with the method of empirical analysis of the listed company’s external self-serving attribution degree’s relationship with the company’s performance. Attribution of words is able to objectively reflect the degree of attribution as the explained variable, the changes in Earnings per share, Earnings per share rate of change, Net profit margin, Operating income and Assets can objectively reflect the company’s financial performance indicators as explained variable, with the method of stepwise regression analysis to verify performance of listed companies of textile industry the worse the higher the degree of attribution.The final conclusion of this article management of listed companies in China’s textile industry is indeed common external self-serving attribution behavior, and the worse the performance of the more prominent due to the extent and nature of the behavior attributed to conceal internal management issues arising.Finally, the paper puts forward some suggestions, we should optimize our ownership structure, improve the transparency of information between managers and shareholders, and the managerial ownership is a potent inhibitor of self-serving attribution method of operation. I believe that with China’s securities market for language information disclosure and supervision system to constantly improve the quality of our annual report disclosure will be rising.