Corporate Nature Top Executive Turnover And Accounting Information Quality

The quality of accounting information has always been a hot topic in academic research,and it has never left people's horizon.Basing on and facing to the market,the company's accounting system is an artificial transmission system that delivers economic information such as the company's financial position and operating performance.Through to the allocation of corporate power and constraints,effective corporate governance can prevent and restrict management's irregularities in the course of performance.It also can correct management's actions against the interests of stakeholders and remedy the consequences.The departure of top executive is one of the common phenomena of corporate enterprises.Top executive turnover is one of the hot academic issues in corporate governance.Therefore,this paper studies the relationship between top executive turnover and the quality of accounting information based on the change of executives in corporate governance.This article adopt the method of empirical research.Based on the principal-agent theory,corporate governance theory and information asymmetry theory,this paper studies the effect of top executive turnover on the quality of corporate accounting information.The analysis concluded that the senior executives were motivated to manage earnings management in order to obtain job stability,maximize compensation and reputation.It leads to reduce the quality of accounting information.Using a sample of Chinese A-share companies between 2011 and 2016,our paper empirically explores the relationship between top executive turnovers and accounting information quality.The modified Jones model is used to measure the quality of the accounting information by separating the discretionary accruals.Top executive turnover is defined as the change of senior management by the general manager or the chairman.From the perspective of property rights and top executive turnover,this paper study the influence of property rights and executive change on accounting information quality.This paper finds that compared with private enterprises,the quality of accounting information of state-owned enterprises is relatively high.The quality of accounting information of the enterprises will decrease when the company's senior executives change,and the effect mainly occurs in private enterprises.In order to ensure the reliability of the research,the influence of various factors on the quality of accounting information is controlled in the research model.This paper develops the related research on the top executive turnover.It also enriches and expands the related research on the quality and agency of accountinginformation of enterprises.On the basis of the above study,the main point and conclusions of this paper are summarized.From the perspective of top executive turnover on how to improve our country enterprise accounting information quality,strengthen the supervision of a listed company executives change process and management,improve corporate governance,strengthen the protection of the interests of the investors,improve resource optimal allocation of capital markets,the paper put forward the relevant policy recommendations.