An Empirical Research On The Relationship Among Institutional Investors,Enterprise Characteristics And Accounting Conservatism

The conservatism of accounting reflects the conservatism of accounting treatment,and is one of the most important problems in the research of accounting information quality.In 1980 s,institutional investors represented by pensions in the United States emerged to participate in corporate governance of listed companies through equity role and the governance role has been widely tested and recognized in western countries,the relationship between it and accounting conservatism has been widely discussed.In 1990 s,China's institutional investors emerged and grew rapidly,the research about the relationship between them rised accordingly in China.Scholars at home and abroad to explore the relationship between institutional investors and accounting conservatism from the perspective of the overall and heterogeneity,in recent years,in the relevant research began to consider the impact of different corporate characteristics on the relationship between the two.Institutional investors are in the strong momentum of development,the scale and number of them are growing rapidly,their power in enterprise decision is increasing,in this situation,the research about the governance effect of institutional investors is undoubtedly has important practical significance.As to corporate characteristics,Ownership structure determines the basis of corporate governance structure and business performance,Growth ability is to describe the development speed and trend of the enterprise,Operating capacity embodies the process of enterprise management is good or not.Based on this background,this paper choose Ownership structure,Growth ability and Operation ability three specific dimensions of the enterprise characteristics to explore the relationship between institutional investors and accounting conservatism.The research not only helps us to understand the institutional investors role in the economic development more deeply,but also make us a better understanding of the differences in the different enterprise governance.It makes sense for listed companies to optimize the ownership structure,improve the overall management level of enterprises.It also provide inspiration for the market regulators and government agencies to protect the interests of investors,regulate the capital market,and provide theoretical and empirical support for the healthy growth of institutional investors.Based on normative analysis and empirical tests of the listed company data of 2010-2015,the results of the study showed that institutional investors and accounting conservatism is positively related,"pressure resistant institutional investors can significantly improve the accounting conservatism,and" pressure sensitive "institutional investors cannot significantly improve the accounting conservatism,China vigorously support the development of institutional investors,especially the" pressure type ";in the degree of Equity restriction,positive interaction between institutional investors and accounting conservatism is strengthened,the government supervision departments should advocate the application of balance form ownership structure;in the companies with high Net profit growth rate,positive interaction between institutional investors and accounting conservatism is weakened;in the company with high Accounts receivable turnover rate,the positive effect between the institutional investors and accounting conservatism is also weakened,for this reason the understanding of the role of institutional investors cannot be generalized but according to the specific situation of the enterprise,the improve role of institutional investors in the accounting conservatism will be weakened in the companies with high growth rate and operation ability.This paper consists of six parts.The first part is the introduction,which describes the background,significance,methods and framework of the thesis.The second part is the literature review,which summarizes the institutional investors and accounting conservatism,corporate characteristics and accounting conservatism,as well as the results of the study between the three.The third part is the theoretical analysis and hypothesis,introduces the theory of institutional investors' governance,and puts forward the hypothesis.The fourth part is the design of the study,which describes the main data selection,the selection of variables and the construction of the model.The fifth part is the empirical analysis,which describes the test results and analyzes them.The sixth part is the conclusion and suggestion.