The Impact Of Political Connection On The Quality Of Accounting Information

As early as Fisman(2001)studied the relationship between Indonesian companies and the Suharto family,the concept of political association was proposed[1].Because there is no unified definition of this concept at home and abroad,according to the current situation of the country,this article will be executives.Being elected as a NPC deputy or CPPCC member means that there is a political connection.As China's market is still in a transitional stage,and because of the institutional characteristics of the Chinese market and the long-standing "relationship"culture,the government still plays an important role in resource allocation.Enterprises often take the initiative to establish political relations to obtain favorable policy support or cheap Public resource.At present,domestic research mainly focuses on the motivation of political association,the influence of political association on corporate value,and the influence of political association on the quality of corporate accounting information.However,studies on the influence of political association on the quality of accounting information have not formed a unified conclusion.First,based on the political cost hypothesis and the contract theory,this paper constructs a theoretical analysis framework for the political background of senior executives and the quality of accounting information.Secondly,this paper selects Hong Kong-listed companies from 2006 to 2016 to establish a model as a research sample,uses SOHO Chinese companies as research subjects,and uses regression analysis and T-value tests to use accounting conservatism and earnings management as an indicator of the quality of accounting information.Finally,the author analyzes the influence of the political background of senior executives on the quality of accounting information of Chinese private listed companies and the ways in which they impact.Research shows that the political context of the company reduces the soundness of accounting and increases earnings management.According to the research conclusions,this paper finally proposes policy suggestions such as perfecting corporate information disclosure system,improving accounting information transparency,and weakening government intervention.By describing the influence of the government background owned by senior executives on the quality of accounting information,finding appropriate ways to adjust and improve private companies listed companies with administrative background and government background,to improve the quality of accounting information,and to promote China The healthy development of listed companies and capital markets has a certain guiding significance.