An Empirical Research On The Impact Of Audit Committee Characteristics On The Quality Of Management Accounting Information Disclosure

In recent years,the number of domestic and international financial fraud events have not been reduced as people expect.On the contrary,there is an increasing trend in fraud events as the change of economic environment which greatly undermines the interests of investors and stakeholders.The audit committee is an important part of internal supervision that should review the internal control deficiencies to avoid the risk of financial fraud and to restrain the misconduct of managers.The outbreak of financial fraud is due to the defects of internal control and imperfect internal governance,coupled with the investor's financial professional level is uneven in particular.Lots of investors lack the ability to understand and evaluate financial reports so that they cannot make a comprehensive evaluation of the actual operation of the enterprise.So investors are eager to get internal information for their investments.The disclosure of management accounting information has been a trend for future development.However,the quality of management accounting information disclosure in our country is difficult to be satisfied for stakeholder.It is urgent to strengthen the quality of accounting information disclosure.The scale and independence of the audit committee are pivotal factors that affect the efficiency of the audit committee and some other characteristics of the audit committee also played a role in promoting the operation.Optimize the characteristics of the audit committee could enhance the effectiveness of the audit committee to monitor more effectively and have a beneficial impact on management accounting information that enhance the overall quality of its disclosure.This paper will conduct innovative research based on the past research.Firstly,this paper defines the characteristics of audit committee and the quality of accounting information disclosure.Then,this paper explains the relevant theories including the principal agent theory,asymmetric information theory and corporate governance theory.Then select the appropriate control variables according to the six characteristics of audit committee including scale,independence,education level,gender ratio,diligence and Personnel changes.The paper puts forward six hypotheses about the influence of the quality of accounting information disclosure based on the above six characteristics.The method of scoring the contents of the annual report of the enterprise is adopted to measure the quality of management accounting information disclosure.This paper scoring one by one according to the major categories and rules from the content of the management accounting information disclosure in annual report.This paper use the relevant data of audit committee characteristics from Shanghai main board listed companies in 2015.Pearson correlation test and multiple liner regression method was employed to explain the relationship between the characteristics of audit committee and the quality of accounting information disclosure.This paper will draw some conclusions that will be explained and analyzed.It is found that there is a significant positive correlation between the audit committee's scale,independence,education background,diligence and the quality of management accounting information disclosure.There is a significant negative correlation between the change of audit committee and the the quality of management accounting information disclosure.However,the gender characteristics of audit committee have no significant impact on the quality of management accounting information disclosure.Later,this paper puts forward some suggestions on the characteristics of audit committee in China based on the conclusion which from the perspective that improving the effectiveness of supervision of China's audit committee and improving the overall quality of China's accounting information disclosure.In the end,this paper puts forward the shortcomings of this paper in order to further study in the future.