Separation Of Control Rights And Cash Flow Rights?Product Market Competition And Quality Of Accounting Information

As the medium of market transaction,the efficiency of accounting information transmission among the transaction subjects determines whether the capital market can operate efficiently and cheaply.High-quality accounting information can reduce the agency cost and improve the value of the company.However,in recent years,accounting information fraud happens frequently in Listed Companies in China.The quality of accounting information is seriously worrying,and the interests of minority shareholders can not be protected.A large number of scholars have proved that the phenomenon of high concentration of ownership and dominance of shareholders is common in enterprises,and the separation of cash flow rights of ultimate shareholders is serious,resulting in the phenomenon that ultimate shareholders are not supervised,which makes ultimate shareholders have strong motivation and ability to seize corporate interests by manipulating corporate financial information,earnings manipulation and other acts to obtain private benefits of control.At the same time,product market competition is one of the external environmental factors,its intensity will have an impact on the company's behavior decision-making.Based on this,this paper studies the impact of the separation of cash flow rights of control rights and product market competition on the quality of accounting information,and whether product market competition will moderate the relationship between the separation of cash flow rights of control rights and the quality of accounting information.Based on the theory,private interest theory of control rights and market competition theory,and 14746 samples from 2013 to 2017,this paper first studies the impact of control cash flow rights separation effect of accounting information quality;then studies the impact of product market competition on the quality of accounting information;and on this basis,according to listed companies.The degree of product market competition in the industry is divided into high and low competition groups,and the impact of product market competition on the separation of control rights and cash flow rights and the quality of accounting information is further studied.Finally,according to the results of empirical research on accounting information quality of listed companies and put forward policy recommendations.The results show that:(1)there is a significant negative correlation between the separation of control rights and cash flow rights and the quality of accounting information,that is,the greater the separation of control rights and cash flow rights,the accounting information quality worse;(2)The more incentive the product market competition is,the better the quality of accounting information;(3)Compared with the highly competitive industries,the negative correlation between the separation of cash flow rights of control and the quality of accounting information is more significant in the low competitive industries.That is,under the same conditions,the more fierce the product market competition is,the weaker the negative correlation between the separation of cash flow rights of control and the quality of accounting information is.According to the results of this study,this paper further proposes to promote the improvement of the company's internal equity system,actively introduce institutional investors,establish a competition mechanism dominated by product market competition,improve the company's external governance environment,strengthen the Guidance and Supervision Function of Capital Marketand,promote the improvement of accounting information quality of listed companies.