Security Regulation Circumvention And Accounting Behavior Alienation

Security market in essence is information market, and high quality accounting information is cornerstone for a healthy security market. However,endless accounting behavior alienations took place in firms especially listed companies of China in recent years had caused lots of serious accounting information problems.As indicated in our research as well as many other researches, many accounting behavior alienations of listed companies could be mainly attributed to the particular security regulation policies and corresponding regulation behaviors of the regulators in the economic transformation period. These accounting behavior alienations are what we called aroused-accounting-behavior-alienation. It is of great significance theoretically and practically to do a systematical research and make a systematical demonstration on the dynamic process and signs,the true motivation and reasons, the deciding factors of the degree and scope,and the corresponding solutions of listed companies'of this kind of accounting behaviors alienation, and how the particular security regulation policies and corresponding regulation behaviors result in listed companies'accounting behavior alienations.To begin with analyzing relevant institutions and applying behavior theories ,We explain how the particular security regulation policies and corresponding regulation behaviors of the regulators lead to the listed company taking alienated accounting behavior to circumvent regulation. Second, by using those enterprises whose ROE is under the refinancing regulation policies as mirrors to set up a dynamic game model, we have analyzed and get the knowledge of how and to what degree the alienated accounting behaviors would be used by the listed company to circumvent regulations and the effects of the corresponding regulation behaviors and special rights-duties configuration of the listed company on accounting behavior alienation degree,and also get to know which companies would like to and be able to alienate the accounting behavior to circumvent the security regulation . Third,We investigate how the big shareholders'control ability,expected financing scale from minority ,pressure of funds reserved affect the magnitude of earnings management in the course of SEO. In some degrees , evidence from this investigation reflects the deep motivation and characteristics of accounting behavior alienation to circumvent regulation and confirms those arguments established above in this paper. Finally,in order to increase the efficiency of accounting regulation, we developed a Three-dimensional governance approach of accounting behavior alienation and used it to evaluate the accounting regulation system of listed companies. We pointed out that improper regulation entities'arrangement and right-responsibility structure of the present accounting regulation system in China would weaken the efficiency of accounting regulation and we can resolve this problem by settling up an accounting regulation committee with proper arrangement of its regulation right-responsibility structure, personal structure and financing source,and so to build a new accounting behavior regulation system.