Military Experience Of Excutives And Accounting Conservatism

Accounting conservatism has always been a focus of attention in accounting academic fields around the world.Chinese scholars have also carried out research from various aspects,which greatly enriched the research results of accounting conservatism.As the actual person in charge of the daily operation of the enterprise and the decision makers,the senior executives of the enterprise have a great influence on the level of accounting conservatism of the enterprise.Domestic and foreign scholars have mainly studied the influence of executives' age,gender,tenure,and professional experience on accounting conservatism,but have not studied the impact of executives' military experience on corporate accounting robustness.This paper studies the relationship between executivest military experience and accounting conservatism through theoretical analysis and empirical test methods,and then introduces internal control quality and marketization degree as internal and external adjustment factors,and further studies whether the job difference of executives have different effects on accounting conservatism,thus expanding the research horizon of executives' military experience and accounting conservatism.Starting from the imprinter theory and high-level echelon theory,this paper analyzes the relationship between executives' military experience,internal control,marketization degree and accounting conservatism.Secondly,this paper selects the 2008-2017 Shanghai-Shenzhen A-share listed companies as research samples,conducts correlation analysis and multiple regression analysis,tests the relationship between executives' experience and accounting conservatism,and the quality of internal control and marketization.Subsequently,this paper uses the propensity value matching method,Basu model and group test to test the robustness and endogeneity of the main hypothesis.Thirdly,this article divides the executives from the military experience into the general manager's military experience,the financial director's military experience,and the chairman's military experience,discussing the differences in the influence of military executives' differences on accounting conservatism.Finally,based on theoretical analysis and empirical results,this paper presents research conclusions and related recommendations.The research findings in this paper are as follows:(1)Compared with the executives who have no experience in the military,the executives have stronger institutional accounting experience from the military experience;(2)the high-management experience and accounting conservatism among the companies with high internal control quality;(3)In areas with high degree of marketization,the positive correlation between executives' experience and accounting conservatism is weaker;(4)Compared with the chairman and chief financial officer,the general manager has a more significant role in promoting the soundness of corporate accounting.The main innovations of this paper are:(1)Exploring the relationship between executives' experience and accounting conservatism;(2)From the perspective of both internal and external listed companies,examine the role of internal control quality and regional marketization in regulating the relationship between executives'military experience and accounting conservatism.