An Empirical Study On The Relationship Between Internal-external Supervision Mechanisms And Accounting Transparency

Stock Market requires enterprises to provide information disclosure, and the transparency of information disclosure is associated with the validity of stock market directly. The Securities and Exchange Commission (SEC) of U. S. had a special report about stock market in 1963, pointed out that "the center of basic securities legislation framework is the enterprises'contents open, which not only allows investors to make wise judgments by using the appropriate financial or other information, but also the best way to prevent securities fraud." In recent years, accounting scandals occurred frequently, so that the concept of accounting information transparency become of great concern, and it attracts the attention of both the practitioners and theorists. In order to achieve high accounting transparency, accounting information of listed companies needs strict supervisions from the inside to the outside. So for the part of protecting investors'benefits and achieving rational resource-allocation in stock market, the research of accounting transparency based on the monitoring mechanism makes great sense.Starting with the definition of the accounting information transparency, this paper is based on agency theory of new classical economics, and then explains the supervision mechanism of accounting information quality. Going down the theme of "Theoretical Analysis-->Current Status-->Empirical Test", upon actual supervision mechanism of Chinese background, from two aspects of theoretical analysis and empirical test respectively, the article analyzes the impact on accounting information transparency from both the internal and external oversight mechanisms. At last, it points out some improvement suggestion about the present monitoring mechanism at China's listed companies.This paper argues that, at the present stage in China's accounting environment, it is appropriate to reflect the accounting transparency from the quality of information disclosure, so this article discusses China's current supervision mechanism from the perspective of earnings management. Empirical test showed that, from the external aspect, the independent audit plays the supervisory role, the function of securities regulation is not significant, the creditors'binding on information disclosure is not strong; and then from the internal aspect, Ownership Concentration on the impact of accounting transparency is not significant, the supervisory role of independent directors has been challenged again, the Board shows the characteristics of post-treatment, equity incentive policies towards the Supervisory are conducive to the improvement of accounting transparency, the Audit Committee of listed companies has played a certain degree of supervisory role.