The Quality Of Accounting Information And Institutional Investors Holding The Empirical Research

In China under transitional economy and with the development of capital market, the participating group in market is constantly abundant, where the institutional investors, as professional invertors in capital market, also have developed much. By researching, scholars think that the growth of institutional investors has completely changed corporate ownership structure, improved traditional corporate governance and became an indispensable important force in construction process of developed capital market and in governance process of listed company. Institutional investors in our country judge corporate values by using accounting information quality in listed company, participate deeply in corporate governance, make use of supervision function, and then form an effective constraint on listed company.The thesis starts with analyzing the decision usefulness of accounting information quality and comprehensively discusses the relationship of accounting information, institutional investors and corporate governance. By summarizing current research results, the thesis proposes that institutional investors, who want to participate in corporate governance of listed companies, will surely pay attention to the accounting information which reflects perfect degree of corporate governance of listed companies, and make stock ownership decision according to accounting information quality. Therefore, the thesis verifies the relationship between stock ownership of institutional investors and accounting information quality, and concludes that integral stock ownership of institutional investors is positively correlated with discretional accrual of listed companies. When there is earnings management exists in listed company, the low accounting information quality will instead bring an increase in proportion of institutional investor shareholding, especially upward earnings management show significant positive correlation with institutional investor shareholding. The empirical results above indirectly reflect that institutional investors pay attention to current performance of listed company and pursue for short term profit.