Study On The Relationship Between Financial Information Quality And Corporate Restructuring At The Different Structures Of Heterogeneity Governance

The purpose of the study is to strengthen the relationship between governance and the quality of financial information. Recently, many studies analyzed the issues between governance structure / level and profit quality and profit sustentation, furthermore, to directly discuss the effect of governance on financial information quality. However, this study views from a cross section view, the governance may be effected by other strategy events and have different result in financial information quality. Corporation strategies that have great influence on ownership structure are: merger strategy, restructuring strategy and employee stock ownership trust. Once there is any change in stock ownership, it also means there is change in the mechanism of management and its effect on financial information quality shall also be different.In general, the corporation restructuring by management is reorganization which is based on the operation. The significances are different, also has different meaning for management's position defending. In the past, many documents shown that a good governance design can reduce the opportunism of management and increase their desire for making effort to benefit the shareholders. But, under the financial strategy that management has right to draw on, a good design does not reach the effect for certainty. This study discusses three results from corporation restructuring: No producing cash flow, increasing case flow and decreasing cash flow. Is there any influence on financial information quality? The restructuring has designed the change of governance level. This study only treated the governance as a control variable, and separates the ownership structures against the features to discuss if cash flow producing affects the financial information quality under different ownership structures and controlled governance variable. Further, to research the relationship between governance and financial information quality.This study discussed the corporation which is under restructuring. Compare the influence on financial information quality before and after the restructuring. Also compare with the corporation which is not yet been restructured. Followed, discusses whether different restructuring contents improve the financial information quality. Further, to discuss under different governance type, the influence of governance and restructuring variable on financial information quality. The study discovered that the corporation restructuring makes improvement in financial information quality. And, the corporation, which is restructured regularly, the financial information quality is superior than those never be restructured. The corporation restructuring has positive result in improvement of financial information quality.