Property Rights?Financial Distress And The Quality Of Accounting Information

With the continuous improvement of the capital market,the competition among enterprises is becoming more and more intense.Any listed company may get into financial difficulties in the fierce market competition.Financial distress enterprises are often faced with the problem of declining funds and solvency,so enterprises usually manipulate earnings by earnings management,change the content of information disclosure and so on,this kind of means of manipulating surplus will reduce the quality of accounting information.Because most investors are lack of understanding of the external personnel on the status of the enterprise management,there are serious information asymmetry between enterprises and executives,but the quality of accounting information can reduce the information asymmetry between investors and enterprises,so that investors have more objectively understand the real financial situation of the enterprise into financial distress.Therefore,considering the interaction between the three factors of property right,financial distress and accounting information quality,we study the influence of property right and financial distress on the quality of accounting information.Through the combination of literature review and case study,the current research status between property rights,summarized the financial difficulties and the quality of accounting information.Based on the principal-agent theory,asymmetric information theory,the theory of property rights and the soft budget constraint theory to analyze the effect of the quality of accounting information of the motives and methods of corporate financial distress,and the different nature of the property rights of enterprises in the face of financial distress in different out of difficulty,different accounting information quality and lead to different turnaround strategies theoretical analysis.This paper chooses automobile manufacturing industry as a case enterprise,and selects state-owned enterprises and private enterprises with similar assets.Through screening Z scores,we can judge whether enterprises are in financial distress.From the three aspects of information disclosure quality,earnings management and the comprehensive score of accounting information quality,we compare the accounting information quality of different property right enterprises,and draw the conclusion that in financial distress,the quality of accounting information of private enterprises maybe better than that of state-owned enterprises.