An Empirical Research On The Relationship Between Insurance Fund Shareholding And The Quality Of Accounting Information

With the continuous progress of China's society and economic growth,as an important part of the financial system,the insurance industryhas achieved rapid development and is playing the role of a mainstay in the economic field.In August 2014,The State Council issued The Several Opinions about Speed up the Development of Modern Insurance Industry,which defined the important status of the insurance industry and made it clear that insurance was an important symbol of economic development,social civilization and social governance ability.Since all the time,because of the particularity of insurance company,its investment limits receives attention which can be in only Insurance Law.It is not allowed to invest stock market before 1995.In recent years,from 1995 ban to 1999 allow indirect access to the market,insurance fund into market experienced from noting,from less to more rounds of policy adjustment.The increase in the upper limit of the proportion of equity assets invested in insurance assets not only reflects the positive attitude of the regulatory authorities to encourage long-term funds to enter the market,but also brings incremental funds to the stock market,which is conducive to boosting market confidence and promoting the steady and healthy development of the capital market.According to statistics,as of the end of 2018,the balance of insurance funds was 16.4 trillion Yuan,of which 192.1987 billion Yuan was invested in stock and securities funds,accounting for 11.71 percent.Insurance company holding shares of listed companies not only broaden the insurance fund investment channels,optimize the insurance company's profit model,improve the efficiency of capital liquidity and use,and as institutional investor,it will also affect the operation of listed companies as a major shareholder decision-making and corporate governance,so as to improve the operating efficiency of listed companies.Theoretically speaking,insurance fund will bring certain influence to the quality of accounting information of listed companies.There are many factors influencing the quality of accounting information of listed companies,among which corporate governance structure is an important factor.As an important institutional investor of listed companies,insurance companies are bound to affect the governance structure of listed companies,and thus the quality of accounting information of listed companies.According to the existing literature research,institutional investors have no agreement on the influence of accounting information quality of listed companies.With more and more insurance companies holding stocks of listed companies,its influence on the quality of accounting information of listed companies has become an important subject.At the same time,in the special period of China's economic transformation,the nature of property rights and the institutional environment as an external governance mechanism will also affect the behavior and decision-making of enterprises.Based on the sample data of non-financial listed companies in A-share from 2007 to 2017,using earnings management and financial restatement to measure the quality of accounting information,this paper studies the influence of insurance fund holding on the quality of accounting information of listed companies.The arrangement of this paper is as follows:The first part is an introduction.Firstly,the hot issue in the economy in recent years Vanke Debate is expoounded,so as to draw out the status quo and role of insurance fund shareholding in China's capital market.And then,taking the quality of accounting information as a foothold,analyzes its impact on the quality of accounting information from the perspective of insurance fund shareholding.The second is a literature review.This section reviews the influence of institutional investors on the quality of accounting information,the influence of property rights on the quality of accounting information,and the influence of institutional environment on the quality of accounting information.Finally,the related literature is summarized.The third part is theoretical analysis and research hypothesis.This part first risk capital ownership and the definition of the concept of the quality of accounting information,and then expounds the principal-agent theory and the theory of corporate governance,and put forward in this paper,on the basis of the research hypothesis,which provides the theoretical foundation for the subsequent empirical examination.The fourth part is research design,sample selection,variable description and model construction.The fifth part is empirical analysis,descriptive statistical analysis,univariate analysis,correlation analysis for each variable,and test the regression results.The sixth part is the research conclusion and the countermeasure suggestion,this part proposes the policy suggestion according to the research conclusion,and points out the limitation and the future prospect of the research.The results of the paper show that:(1)Insurance fund shareholding can improve the quality of accounting information.(2)Compared with state-owned enterprises,the influence of insurance fund shareholding on accounting information quality is more significant in non-state-owned enterprises.(3)Compared with enterprises with better institutional environment,the influence of insurance fund shareholding on accounting information quality is more significant in enterprises with poor institutional environment.Inorder to alleviate the endogenous problem of the research content andtest the robustness of the structure,this paper added PSM and Granger causality test and changed the measurement method of accounting information quality and insurance fund shareholding.The results of this paper are still robust.