Research On Relationship Between Management Overconfidence And Accounting Conservatism Of Chinese Listed Companies

The gradual improvement of China's capital market makes all the stakeholders want to improve the quality of accounting information.Accounting conservatism has long been a special concern of academia and practical circles as one of the important principles of enterprise financial accounting.More robust enterprises will confirm bad news relatively timely,so that enterprises can reduce potential losses in the face of adverse circumstances.So company should enhance accounting conservatism as far as possible;At the same time,domestic and foreign accounting standards allow management to choose accounting policy to a certain extent.But the possible cognitive biases of these choices will undermine accounting conservatism.With the development of cognitive psychology and behavioral finance,the research of accounting conservatism in theory and practice field has a new research idea: management as the core of the enterprise is very easy to overconfidence,overconfidence management will overestimate the potential benefits,underestimate the expected liabilities.Finally,the financial information transmitted to the outside world will have a certain deviation,it will affect the stability of accounting.In view of this,this study considers that the relationship between management overconfidence and accounting conservatism,and the essay will study the mechanism of action,so that it can effectively enhance both theoretical and practical value of accounting conservatism.Firstly,this article introduces the management overconfidence and the accounting Conservatism research background and the research goal,pointed out the research management overconfidence and the accounting steadiness relations between the necessity,and elaborated this article research content and the research technology road map;The second chapter is the related theory foundation and the core definition;The third chapter is an empirical study of the management overconfidence and accounting conservatism of NVC,and it will give a foundation for next part;The fourth chapter is the research hypothesis and the model construction;The fifth chapter is the research conclusion,and it will give suggestion and the future prospect.Based on the financial data of listed companies in China,this paper studies the relationship between management overconfidence and accounting conservatism,the results show that: ? The overconfidence of the management of China's listed companies is negatively correlated with the conservatism of accounting;? The negative effects of overconfidence of managers in non-state holding companies are more significant than those of state-owned holding companies;? high level of enterprise growth will enhance the negative correlation between management overconfidence and accounting conservatism;? Strict external supervision can significantly weaken the negative correlation between management overconfidence and accounting conservatism.This paper studies the influence of related influencing factors on the relationship between management overconfidence and accounting conservatism,explains the empirical results and puts forward policy suggestions,in order to provide reference for improving accounting conservatism of listed companies in China.