The Influence Of Institutional Investors On The Quality Of Accounting Information Of Listed Companies

The accounting information quality directly affects the investors and management decisions.In fact due to the shareholders and management there are serious information asymmetry between managers as entrusted in the principal-agent relationship,out of respect for their own interests to false accounting information,which reduces the reliability and authenticity of accounting information.Oriental wealth network Choice financial terminal incomplete statistics,in 2014 a year on the capital market a total of 28 challenged with financial fraud of listed companies,including eight companies were regulatory investigation or punishment,accounted for 28.57%.This fully reflects the listed company has the problem of accounting information quality is generally poor.To this,we should strengthen the supervision of the manager to improve the quality of accounting information of listed companies.In terms of the current,the interests of small and medium investors in the market can't get good protection,also does not have relatively perfect laws and regulations,combined with such investors less competitive,is weak to implement effective supervision of the listed companies,so that further hindered the listed companies in our country the production of high quality accounting information.But institutional investors can well solve the problem,as the regulation of listed companies is completed by outside investors.Because they not only has a strong research team,and plenty of money,and have strong professional ability and risk to bear ability,cause they can continue to study and supervision of listed companies,in order to timely and accurately found fraud in the accounting information of listed companies.Therefore,this article on the concept and connotation of institutional investors were introduced and analyzed in order to study the behavior of institutional investors,shareholder activism and the relationship between the quality of accounting information and analysis made between.This article features the perspective of institutional investors connotation,institutional investors governance capabilities,features and significance of the content analysis and principal-agent theory,behavioral finance and ownership three theoretical basis,active institutional investors Reciprocitarians been explored.In addition,the paper also carried out empirical study sample is of the Shenzhen Stock Exchange listed companies in 1138 data sample information between 2011 to 2014 for four years,and other factors that affect the quality of accounting information has been controlled,in the descriptive statistical analysis,multiple linear regression analysis and correlation analysis based on combining basic earnings management model,in order to achieve validation correlation reliability of financial reporting of listed companies and institutional investors,as well as the use of the Shenzhen Stock Exchange evaluation of information instead of the information disclosure transparency index,verify the relationship between information disclosure and transparency of institutional investors.We first solve the problem is whether the institutional investors participation in corporate governance can improve the quality of accounting information of listed companies.In this paper,the empirical analysis of the two results are obtained: the one is the proportion of institutional investors hold shares of listed companies and to participate in the ownership of the diversity of institutional investors and the quality of accounting surplus showed positive correlation,and the expectations hypothesis is the same,this also suggests that,for the company,improve the institutional investor shareholding and diversity,not to inhibit the action of the company's earnings management activities.The other one is the proportion of institutional investors hold shares of listed companies and to participate in the ownership of the diversity of institutional investors are positively correlated with the accounting information disclosure and transparency,and expectations hypothesis,same shows that institutional investors intervention to improve the company's accounting information disclosure transparency.To sum up,the introduction of institutional investors to improve the accounting information quality of the company as a whole.Suggests that the supervision of the company's managers have played a role,has a positive influence in the company's management level,at the end of the paper,according to research conclusions targeted puts forward some Suggestions and points out the deficiency of this article and further research direction.