Monetary Policy,Accounting Comparability And Accruals Anomaly

Macroeconomic policies play an important role in the quality of firms' accounting information and the efficiency of capital market.Since the financial crisis in 2007,frequent changes in monetary policy have provided a very rare opportunity for the study of macroeconomic policy changes and corporate micro accounting information disclosure and its economic consequences.The paper first uses the normative research method to analyze the possible influence of the accounting information comparability on the accrual anomaly.On this basis,the empirical research method is used to explore the influence of monetary policy and accounting information comparability on the accrual.This paper studies the effect of monetary policies and accounting comparability on the accrual anomaly by using the data from the 10010 firm-year listed firms on the Chinese A-share security market from 2006 to 2015.Through the measurement of variables such as monetary policy,accounting comparability,annual cumulative abnormal rate of return,descriptive statistics,correlation analysis,regression model and robustness test,the article completes the empirical analysis.The results show that the delisting rules may explain why there does not exist accrual anomaly on China's capital market.After controlling the money-losing firms,there does exist accrual anomaly on the Chinese capital market.The results also show that accounting comparability may slow down the accrual anomaly,investors may price highly accruals and cash flows due to the more comparable accounting information during the tight monetary policy years Therefore,regulators should strengthen the supervision of money-losing firms,also requires the listed firms to improve the accounting comparability in order to release the financial constraints in tight monetary policy periods.This study helps to understand the important role of the quality of accounting information in different macroeconomic policies and microeconomic activities.