Conservatism,executivenetworkandinovationn

In 2008,FASB and IASB did notmention the principle ofaccounting conservatism initsconceptualframework.In2015,basedonUScompanydata,some scholars found that accounting conservatism is not conducive to enterprisesimprovingthelevelofinnovation.Thisfinding,intheUnitedSatest whichhighlyvaluesscientificandtechnologicalinnovation,supportsthedecision oftheFASBandISBabolishingtheprinciplesofaccountingconservatism.China,A acountry,isalsoamoreemphasisonscientificandtechnologicalinnovation,but hasnotyetabolishedtheprincipleofconservatism.Sowhatabouttherelationship betweenaccountingconservatism andcorporateinnovationinChina?Thestudy ofthisissueisofgreatsignificanceforthestateandenterprisestousethe accountingconservatismandraisethelevelofinnovation.Accountingconservatism,animportantprinciple,dealwiththegainsand lossesAsymmetricallywhenrecognizeassets,benefits,liabilitiesandcostsin corporateaccountingpractices.Thelevelofaccountingconservatism hasan importantimpactontheagencyproblemandtheacquisitionoffunds.Therefore,it mayaffecttheleveloftheenterprise’innovation.However,thereislittleliterature ontheimpactofaccountingconservatism oncorporateinnovation.Asaresultof workinginmultiplecompaniesatthesametime,executivesestablishthesocial networkrelationship,whichcanbefoundinmanyenterprisesin China.The influenceofthesocialnetworkofexecutivesonenterpriseinnovationhasalready beenfoundbymanyscholars,buttherearevitaldifferencesabouttheconclusion,sowhichneedsfurtherstudy.Thesocialnetworkofexecutivescanchangethe speedandquantityofexternalinformation.Thehigherthelevelofsocialnetwork,thefasterandthemorethefirm getstheinformation.Andthefirm getsmoreevidencetoconfirm revenueandexpenses.Sosocialnetworkmayadjustthe impactofaccountingconservatism onenterpriseinnovation.However,thereis littleliteraturetostudythisregulatoryeffect.Sounderthepremiseofsummarizingtherelevantresearchresultsathome andabroad,thispaperadoptsempiricalresearchmethodandnormativeresearch method.Basedonthetheoryofagency,signalandsocialcapital,thispaperbuilda theoretical analysis framework of the relationship among accounting conservatism,executive socialnetworkand enterprise innovation.Using the samplesofAsharelistedcompaniesfrom-2008to2012,thispaperempirically testtherelationshipamongexecutivenetwork,accountingconservatism and firm’sinnovation,andthemoderatingeffectsoftopexecutivenetwork.Itfinds thatbothtopexecutivenetworksandaccountingconservatismcontributetofirm’s innovation.However,considering top executive networks,itsuggests that accountingconservatismisnegativelyrelatedtoinnovation.