| The study of behavioral consistency in psychology reveals the influence of personal characteristics and environment on human behavior.That is,individual experience accumulation and life experience will shape different personal characteristics.Under the influence of this trait,people's behavior in different environments will have similarities.The theory of high-level echelons in corporate management,which corresponds to the discovery of psychology,focuses on the personal qualities of managers and reveals that the personal characteristics of managers have a certain influence on corporate behavior.With the introduction of this theory,a large number of literatures about managerial backgrounds and corporate behaviors have emerged.These articles have made multi-angle breakdowns of managerial identities and personal characteristics,and studied such issues as enterprise earnings management,audit quality,and internal control.The influence of many aspects of corporate behavior.After the resignation of the accounting firm's auditors,the phenomenon of becoming a company's managerial position has become increasingly common.The reasons for this phenomenon may be threefold.First,compared with the high-intensity and high-stress work of the firm,on the one hand,corporate management positions can provide equal pay and even higher pay,but smaller work-intensive "high cost-effective" working conditions,on the other hand,can give higher social status incentives.Second,the exercise of accounting firms has made auditors possess sufficient professional knowledge and professional qualities,so they have the right to choose the second work.Finally,for companies,CFOs that employ the experience of accounting firms can provide certain guarantees for the standardization and correctness of corporate finances.The impact of an accounting firm's experience can be summarized in three ways.One is the influence on the attitude of the service,the second is the impact on professional competence,and the third is the influence on risk appetite.In terms of attitudes,due to the constraints of professional ethics,auditors must possess the characteristics of honesty,objectivity,and fairness,and require them to seek truth from facts.Under the influence of this trait,the CFO's auditors may prefer to record facts and exclude exaggerations and fraudulent behavior.In addition,it is very important that auditors must maintain their due attention.The intuitive response is to maintain professional suspicion,which may lead to the auditor becoming skeptical and cautious after becoming a CFO.In terms of professional competence,since the auditors are exposed to the financial audits of many companies each year,they have stronger risk identification capabilities and business processing capabilities,becoming CFOs who can better manage the company's financial work and improve the quality of corporate financial reports.However,at the same time,it may also be because of its stronger anti-audit ability to make more hidden adverse behavior.In terms of risk appetite,because auditors are subject to fiduciary duties,they will be more concerned about their reputation and career prospects.Therefore,they will be more inclined to avoid risks and conduct financial reports in good faith.This article takes CFOs that can directly influence corporate financial information as the research object,takes CFO's accounting firm experience as an entry point,and studies whether the CFO's prudent approach attitude and accumulated professional competence after working as an auditor and training have been cultivated.It will be brought into a new position,affecting his analysis and decision-making and strategic judgment,thereby further affecting the company's accounting conservatism.This paper collects CFO data from the annual reports of non-financial A-share listed companies in 2011-2016,obtaining a total of 12704 observations,and then using Ball and Shivakumar's(2005)accrual cash flow model for regression analysis to study how auditor experience of CFOs and the differences between auditor experience affect the company's accounting conservatism.First of all,this paper examines the relationship between CFO firm experience and accounting conservatism,and further regresses according to the service length of the CFO with auditor background,and studies the influence of the CFO with auditor background with different length of service on the company's accounting conservatism.Secondly,this article will further subdivide the auditor experience of the CFO,and on the basis of controlling the length of the CFO's length of service,we will study the impact of the big4 experiences and non-big4 experiences on accounting conservatism,and the impact of longer auditor experience and shorter auditor experience on accounting conservatism.Thirdly,this paper studies the influence of the CFO with auditor background,which is concurrently the general manager or executive director,and the CFO with auditor background,which does not exist in the above-mentioned part-time situation,on the accounting conservatism.Finally,the paper further distinguishes the nature of property rights and studies the effect of the CFO with auditor background on the accounting conservatism of state-owned and non-state-owned enterprises.After the above studies,this paper finds that:(1)CFO's firm experience can significantly improve the company's accounting conservatism,and further distinguish the CFO's length of service in the company found that the longer the background of the firm's office CFO than the shorter time of the office background CFO can improve the accounting conservatism.(2)Compared with CFOs who have worked in small accounting firms,CFOs who have worked in large accounting firms can improve the company's accounting conservatism.(3)The longer the term of office of the CFO firm,the deeper the firm's influence on the firmn's practice traits,making the CFO whose firm has a longer term of office than the firm's short term tenure can improve the firm's accounting conservatism.(4)Compared with CFOs who do not serve as general managers or executive directors,CFOs who serve as general managers or executive directors are more capable of improving company accounting conservatism.(5)After distinguishing between state-owned companies and non-state-owned companies,it is found that there is no significant difference in the influence of non-state-owned company firm background CFOs and state-owned company firm background CFOs on accounting conservatism. |
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