Management Power,Accounting Conservatism

As an information system,accounting transport economic information to the enterprise stakeholders.Shareholders through the disclosure of financial information to determine whether the continuous investment,the creditor through the disclosure of financial information to determine the debtor's solvency,capital market supervisors through the disclosure of financial information to determine whether the company has economic irregularities.As an important principle of financial information quality evaluation,accounting conservatism has the effect of alleviating agent conflict,improving information transparency,reducing debt cost,raising debt rating and protecting the interests of all parties to the contract.Therefore,the level of accounting conservatism directly affects the quality of information disclosed by the company and affects the value of the company in the capital market.Compared with the developed countries,China's modern enterprise system started late.At present,China is still in the transition of the emerging capital market,corporate governance mechanism is still not perfect.At the same time,in China's GEM and small board listed companies,there are a large number of start-up high-tech companies and family business with "hereditary system",where senior executive is more likely to play multiple roles,and affecting the effectiveness of supervision of board of directors and supervisors.Therefore,in the environment of imperfect corporate governance mechanism in China,it may lead to the problem that the management power can not get effective supervision and suppression in the enterprise.The concentration of management power may concentrate the power of executives,and affect the effectiveness of corporate governance mechanism,leading to the impact of corporate accounting information quality,which decreases the enterprise accounting conservatismAt present,China's venture capital is relatively active,as a positive strategic investor,the influence of venture capital on the development of entrepreneurial enterprises can't be ignored.Venture capital(VC)play the provision of advisory and certification role for the venture business,and can improve the value of enterprises,which is of great significance for the development of China's capital market.However,taking into account the development process of China's venture capital and China's legal environment,China's venture capital projects may focus on the late,pursuit "short fast"project,and prefer Pre-IPO projects.After successfully IPO,venture capital transfer shares to get a high return on investment.Venture capital as an important shareholder of the company,and the management of the inevitable conflict between agents,in order to reduce the information asymmetry,ease moral hazard and adverse selection issues,venture capitalists actively participate in the risk of the board of directors,and use their own Of the financial expertise and social network resources for venture enterprises to provide management consulting and financial advice to prevent executives unauthorized occupation of corporate resources and executives overconfidence which causing excessive investment and waste of resources.Therefore,this paper takes the GEM and small and listed companies from 2010 to 2014 in China as samples,based on the study of the relationship between management power and corporate accounting conservatism,takes long-term and short-term venture capital as an adjustment variable and analyzes the relationship between venture capital and management power,discussing whether venture capital has different influence on relationship between management power and accounting conservatism.and the risk investment is withdrawn from the enterprise.And the study of the venture capital out of the enterprise year,whether the company's accounting conservatism is abnormal.This paper argues that:(1)China's GEM and small board listed companies exist accounting conservatism;(2)The greater the management power,the lower the accounting conservatism;(3)The long-term investment of the venture capital institution will enhance the accounting conservativeness of the enterprise,and the short-term investment of the venture capital institution to the risk enterprise will reduce the enterprise's accounting conservatism;(4)The long-term investment of venture capital institutions will weaken the relationship between management power and accounting conservatism,and the short-term investment in venture capital institutions will enhance the relationship between management power and accounting conservatism;(5)Venture capital out of the risk enterprise of the year,the company's accounting conservatism is lower.Based on the research of management power and accounting conservatism,this paper confirms the harm caused by the imbalance of management power in the view of financial information quality,and explains the optimization of corporate governance structure and the supervision and control of management power is necessary.In addition,China's venture capital on business has two-way impact.On the one hand,venture capital provide professional advice and play the role of certification to the venture business,is conducive to improving corporate accounting stability,enhance corporate value.On the other hand,China's venture capital and the existence of "Chase honor motives".In order to improve their reputation and influence with senior management,and lobbying the management to develop economic decision-making in favor of venture capital institutions,but to reduce the corporate accounting conservatism,failed to ensure the stability and reliability of accounting information.Therefore,to strengthen the supervision and control of executive power,to encourage long-term strategic investment in venture capital can effectively improve the corporate accounting conservatism.It is of great significance to promote the development of China's scientific and technological innovation,new-type entrepreneurship and capital market.We must optimize the corporate governance mechanism of our country to prevent the abuse of the interests of small investors and to promote the establishment of laws and regulations of venture capital.