Research On The Relationship Between Operating Risk And Accounting Information Quality

Accounting information is the characteristics of enterprise?s economic performance and outcomes with currencies,and it?s the reflection of business results, operating results and cash flow situation. The level of accounting information quality is related to whether the Investors, creditors and other stakeholders can make the right judgments and investment decisions about the company’s operating conditions. High quality of accounting information can reduce the cost of capital, improve stock information content, and enhance investor protections. However, a series of accounting fraud issues has appeared in chinese listed companies, which means the quality of accounting information is still worth worrying in listed companies. In that case,it?s difficult for stakeholders to understand the real operating conditions of listed companies by using accounting information,which will increase the investment risks and influence the healthy and orderly development of capital market. Companies in the intense competition often bear the different sizes of operating risk, which will cause varying degrees of impact to corporate earnings. So whether and how operating risk will affect the quality of accounting information? The study of relationship between operating risk and the quality of accounting information can provide a little path for stakeholders to better identify and pricing investments. And it will also provide a theoretical basis for the regulators of accounting information to improve the regulatory mechanism.Operating environment of real estate industry from 2008 to 2013 has experienced the change of the ups and downs, and real estate companies are also going through a series of operational risks. Thus the paper using the real estate companies listed in the Shanghai and Shenzhen main board stock market as the research objects,using the absolute value of the accrued profit as a reverse proxy variable of accounting information quality calculated with modified Jones model, empirically tests the relationship between operating risk and accounting information quality. Through descriptive statistical analysis, correlation analysis and regression analysis to verify the effectiveness of the proposed hypothesis, the paper gets the following conclusions: ①Compared with a lower operating risk of company, the accounting information quality of a higher operating risk of company is lower. ②Compared with the larger companies, the operating risks of the smaller companies have a greater influence on the qua lity of accounting information. ③Compared with the companies of the increased profits, the operating risks of the companies of the reduced profits have a greater influence on the quality of accounting information.The paper studies the relationship between operating risk and accounting information quality, which enriches the research of main factors affecting the quality of accounting information from the angle of investor protection, and puts forward some suggestions on the basis of empirical analysis:first, it is good to issue the industry accounting norms; second, it is good to improve the supervision mechanism of accounting information quality; third,it is good to strengthen the protection of intermediary organizations for investors.