Remuneration Of Directors And Earnings Information Quality Of Listed Companies

Disclosure of the value of capital market equilibrium price discovery and decisive. The level of earnings information quality relation to the effective functioning of the capital market. Factors that influence earnings quality of the information, what does, what factors have an impact on the quality of earnings information. Hyundai is the most important feature of governance, corporate governance can have an impact on the quality of earnings information. As corporate governance is the most important managers of governance, which could have an impact on the quality of earnings information.Hu Yiming(2008) found that the board of independent directors accounting background, the more information the better the quality earnings, the number of participants and the independent directors negative earnings information quality, information quality and earnings but pay independent directors no significant relationship. Tangsong Lian(2010) specifically for the independent directors’ remuneration, to study the relationship between the earnings of listed companies and the quality of information, research results show that the high remuneration of independent directors does not correspond to high-quality corporate earnings information, there is no significant relationship between the two. Xie Zhenlian, Lvcong Hui(2011) study shows that the board of directors enjoyed the proportion of equity incentive, the higher level of earnings management, and management equity incentive earnings management degree and a significant positive correlation with respect to the general manager is not included in incentive programs within earnings management company included relatively high.In this paper, the measurement of accruals quality measure information quality of the earnings of listed companies, the top three test average remuneration of the Board, the Board of Directors of the top three average pay increase performance ratio, the average remuneration of independent directors(via asset adjustments) and Listed Companies the relationship between earnings quality information and the average remuneration of the independent directors(via asset adjustments) can inhibit performance increase than the average remuneration of the top three negative impact on the earnings of listed companies to produce quality information board. And on this basis, further studies with different concentration and financial constraints the level of equity under the influence of the variables on the earnings of listed companies the quality of information whether the change and whether and changes affected ownership concentration, with a view to board governance effectiveness provide further empirical evidence and provide further support for the theory and empirical evidence to improve and enhance the efficiency of corporate governance.Analyzed by rigorous theoretical summary and logical deduction and empirical analysis, this paper specific research conclusions are as follows:(1) When the increase in operating income, a corresponding increase in remuneration of directors, such institutional arrangements are based on the performance of the directors of affirmation and encouragement, the possibility respective directors diligence increased earnings information quality has improved; while reducing operating income, directors remuneration still increase, such motivation contrary to the institutional arrangements of directors diligence as directors diligence is difficult to directly bring results contrary this case the proper conduct of earnings manipulation Buzhi Yu drastic decline in operating income for themselves additional pay for a reasonable, therefore inside directors remuneration and earnings information quality relationship was not significant, mainly due to lower operating income decreased directors may choose not to act.(2) Executive Compensation Incentive relationship between the earnings of listed companies and the quality of the information is not significant. That is simply to improve the remuneration of the Board of Directors, did not significantly improve the quality of earnings information. Conversely, if the directors remuneration grew faster than earnings growth, and that the directors will have enough incentive to manipulate earnings, in order to obtain additional compensation several times. That is director remuneration growth compared to the growth performance of the faster, the worse the quality of earnings information. From the perspective of the protection of the interests of shareholders and investors point of view, the rational design of executive pay incentives is particularly important. If there is excessive incentive for directors of situations in which directors remuneration growth compared to larger earnings growth, that will make the board there is a strong motivation for earnings management to maximize private interests, thus reducing the quality of the company’s earnings information. In other words, try to increase the board’s remuneration should not exceed the growth rate performance, because it will reduce the quality of earnings information than later.(3) the system of governance of independent directors can still play effect, but the effect is weak governance. Increase the average remuneration of independent directors(via asset adjustments), it is possible to improve the quality of listed companies earnings information. When properly designed incentive system of independent directors, should be combined with the number of meetings attended by company size and board may be designed remuneration of independent directors, so pay incentive system, more conducive to independent directors diligence.(4) The board performance increase than the average remuneration of the top three independent directors remuneration interaction term average earnings information quality of listed companies and a significant positive correlation, the board performance increase than the average remuneration of the top three significant negative correlation with the listed company earnings information quality. That is the average remuneration of independent directors on the board of directors can increase performance than the average remuneration of the top three negative impact on the quality of the information generated earnings of listed companies play inhibition. This study shows that independent director system of work alone treatment effect is weak, there may be an indirect interaction with the corporate governance role play situation. The findings of scholars and Adrian(2009) are basically the same.(5) In a further study found that ownership concentration and corporate governance effect of capital structure for directors remuneration system there is a certain influence.In short, appropriate incentives inside directors and independent directors is particularly important for improving corporate governance. Meanwhile, the concentration of ownership for directors remuneration incentive system there is a certain influence.