Stakeholder's Influence On Accounting Contract

Enterprises are regarded as the incomplete contract. The stakeholders of the enterprises take advantage of right to occupy the other stakeholders' profit. The stakeholders of the enterprise have the unstable property rights .and the stakeholders affect the accounting contract setting to acquire the benefit through institutional arrangement the accounting is used to compensate for the incompletence of the contracts in the enterprise.Accounting contract is result of the Equilibrium of Games. It's subtle arrangement that financial information is selected to send to the public according to the stakeholders' intention. The accounting contract is eventually set to enforce the behavior of accounting. The result will change the hold of the stake holders' profit.In the middle of the paper, the process of the stakeholders who share the benefit of the enterprise shows that shareholders, auditors, government, employees and managers affect the accounting contract to acquire and protect the rights of themselves. At the core of enterprise' stakeholders are shareholders and debtors. Who sign the contracts are equity contract and debt contract. Stockholders have the residual claimancy and the residual right of control. They also decide the governance structure of the enterprise. Debt contract affect the qualities of accounting contract too. The managers and employees who sign the contract with the enterprise are second level of stakeholders. The contract is named as agency contract. It includes the managers' salary and workers' wage contract. The manager will affect the implement of the accounting contract in order to occupy the benefit, and the workers' wage built on the contribution to the enterprise.The external organizations of the enterprise who supervise the accounting to some extent are also the stakeholders. It includes the mechanic function of government and the CPA firm. On the one hand, they carry out the function of supervision. On the other hand. They require the earning from the enterprise to survive.The last paragraph of the paper put up the review of the stakeholders' mutualgovernance. The mutual governance is the trend in the modern world. The review of the mutual governance has taken human resource capital into account. The enterprise also has sociality. The social accountability becomes indispensable duty in the enterprise. The mutual governance reviews impact the tradition accounting, it brings the tradition accounting into the human resource accounting and social accountability accounting region.