Character Of Ultimate Shareholders On Accounting Conservatism

Accounting conservatism is one of the basic principles of accounting recognition and measurement.From its emergence to development,it has attracted much attention of theoretical circle.To a large number of scholars both domestic and abroad researching,from robustness characteristics to recent relationship with corporate governance.This article mainly associated with the ultimate ownership,further exploration of the ultimate ownership's impact on accounting conservatism.In this paper,from the pyramid chain up to the ultimate ownership,the ownership of the property as the breakthrough point,in the drawing based on the research of the robustness of ultimate ownership and accounting,analysis summary before the deficiencies and defects,combined with the background of the current system in our country,using Basu model and Khan and Watts(2007)proposed by C-Score index to measure the accounting conservatism.Will ultimately control person nature is divided into state-owned listed companies(including the central government and local government control of the listed company)and non-state control(including natural persons,foreign capital control,the collective,social organizations and worker group control,this article focuses on the natural control)two categories,and ultimately control nature,control of cash flow rights,control and cash flow rights isolation level how to affect the accounting conservatism of listed companies.On the basis of theoretical analysis put forward five research hypotheses,and selected the Shanghai and Shenzhen two city 5230 listed companies during 2011-2014 data as samples,from a new perspective to study accounting conservatism.Through empirical research and analysis,aiming to reveal the final humanity environment control robustness,the influence of China's current economic environment analysis its reason,for the investors legal protection measures to develop and perfect legal system of securities market and the company to provide empirical evidence,contribute to promote the robustness to study accounting in our country,but also for enterprises,government,investors and other accounting information users provide some revelation,promoting the healthy and harmonious development of capital market in China.Given all this,this paper intends to solve the key problems are:First,using data collected by the listed company's ultimate controller is divided into state-owned control(control by the central government and local government control)of the listed company and non-state control(natural person control)of the listed company,respectively discuss the influence on accounting conservatism,compare the differences between the two.Second,on the basis of the differences,combined with the current background in China,analyses the reason of its existence.Third,for the cause of formation,to improve robustness in terms of how to deal with,China's current economic environment put forward relevant policy Suggestions.Based on the above content,through the study of this article assumes that,further confirmed:(1)the listed companies in China eventually control the state high robustness level than a natural person;(2)the final control for central government control than the low level of local government control robustness;(3)control has a negative correlated with accounting conservatism,cash flow right has a positive correlated with accounting conservatism,two rights separation has a negatively correlated with accounting conservatism.Research conclusion of this paper can also be to regulate the behavior of listed companies in China to provide important basis,provide the basis for the securities market resource allocation efficiency.