Reasearch On The Impact Of Accounting Standards Changes On Capital Allocation Efficiency

In modern world,the competition between countries has manifested itself as competition between systems.Whether the existing system can be timely improved and a more effective economic system,political system,and cultural system can be established is the key for a country to attract the inflows of talent,capital,and technology to achieve economic growth continuously.The study of new institutional economics also proves theoretically that effective institution and institutional changes have an important role in promoting economic performance.As one of the most important components of China's socialist economic system,accounting standards guarantee the correct accounting of the company's operating results,the smooth realization of business objectives,and even the steady operation of the macro economy.The Ministry of Finance promulgated the new"Enterprise Accounting Standards" in 2006 and implemented it in 2007,bringing about the substantial convergence between Chinese accounting standards and international accounting standards.Compared with the old accounting standards,new accounting standard not only achieves the update of accounting concepts;but also modifies and merges existing standards,and introduces new ones in time according to changes in the company's operating environment and business from the perspective of content structure,which better satisfies the needs of business operations.So accounting standards as a system which can bring about a wide range of economic consequences,whether this major change has improved economic efficiency is a major issue to be tested.This article takes the economic impact of accounting standards reform as a starting point,and studies whether the implementation of new standards can affect the efficiency of capital allocation.When the nature of the company's property rights is different,whether the impact of changes in accounting standards on the efficiency of capital allocation is different.Through theoretical analysis and empirical analysis,adding qualitative analysis and quantitative analysis,this article based on the past research analyzes in detail the impact of changes in accounting standards on the efficiency of corporate capital allocation.Changes in accounting standards improve the reliability and comparability of accounting information,and ease the information asymmetry between the company and external investors.The ease of information asymmetry has promoted the efficiency of capital allocation by reducing the company's internal moral hazard and reducing the adverse selection of external investors.On the empirical side,first of all,based on the Wurgler model,this paper establishes a measurement model of capital allocation efficiency,and measures the capital allocation efficiency of various industries before and after accounting standards change.Secondly,the efficiency of capital allocation compared whether it is significantly improved after the reform of accounting standards is measured at each year.Thirdly,through adding the dummy variables of accounting standards reform,the study establish the impact model of how the change of accounting standards affecting the efficiency of corporate capital allocation and analyze the role of changes in accounting standards on the efficiency of corporate capital allocation.Finally,the nature of the property rights that may affect the efficiency of the company's capital allocation is added to the model to examine whether there are differences in the impact of changes in accounting standards on the efficiency of the company's capital allocation when the company's property rights are state-owned or private enterprises.The results of the research show that the changes in accounting standards have promoted the efficiency of capital allocation,and there have been different impact when property rights is distinct,because the positive effect on private enterprises is stronger than that on state-owned enterprises.