A Comparative Analysis Of The Relationship Between The Corporate Governance And The Earnings Quality Of The Private Listed Companies In China

Nowadays, the private listed companies have become an important force in the capital market of China. Because the private enterprises, especially the listed ones are greatly related to the reform of the state-owned enterprises and property rights, they have been the focus of research for several years.Under the above background, we take the listed company (private listed companies and state-owned enterprises) as the research projects. We tried to find out whether the difference of the private enterprise and the state-owned enterprise in the system of ownership foundation difference caused them to govern in the company with the earnings quality. We discuss the relationship of the corporate governances and earnings quality.We choose the nature of the listed company's final controller as the criterion of sample separation, and conduct comparative analysis between the private and the typical state-owned listed companies in China, including comparative analysis on each year's sample and the pooling sample. To draw a reliable conclusion, the competition of the products market is also concerned. Based on the competitive degree of products market, we find that the difference has some industry characters.In all, the comparative and regression result both shows that the private companies listed through initial public offering is quite different from the typical state-owned listed companies. Based on the conclusion drawn from comparative analysis, we advance the following policy suggestions: in industries that are more competitive, the number of private listed companies. But to the industries that almost approximate monopoly, the improvement of corporate governance is more important.Because of the time and knowledge limitation, the research has some localization. Such as not considered the influence of different way of coming into the market, not considered the differences of the stated companies group etc. This issue should be covered in further research.