Empirical Research On Bad Debt Provision For Account Receivable Accounting Policy Options And Company Profits

With the development of our national economy, China's stock markets and other securities market also got rapid development. The stock market is more importance in the country's economic. More and more people attention to the public company accounting information quality. Accounts receivable are important component in listed company asset, and in recent years the proportion of account receivable keep improving, AR quality problem is getting attention. Accounts receivable accounting policy choice has enormous impact on the prosperity and development of listed companies. In recent years, many companies started using the accounting policy for earnings management, the public company accounting information quality decreased. This disturbed the development of the stock market. So we must improve the quality of accounting information and regulate accounting policy choice to make the stock market's healthy development. Accounts receivable accounting policy choice is one important part of it.What is the status of listed company AR accounting policy, whether a listed company using the AR accounting policy for earnings management, whether the provision correlation with corporate profits. Answers to these questions, we can make an objective evaluation for the current accounting standards and give some Suggestions to accounting standard setters and accounting regulators. Based on the theoretical analysis and empirical test combination of methods, we try to answer the above questions. The paper quotes a risk guarantee coefficient to measure the current situation of Bad debt reserves in the listed company. We found that the Bad debt reserves accounting policies of listed companies in China was not steady. The paper selects Enterprise of manufacturing industry public companies as the whole sample for empirical study. Found that some public companies in China using accounting policy for earnings management, the Bad debt reserves are negatively correlated with corporate profits. The public company's contract costs and Executive Compensation has had a marked impact on Bad debt reserve accounting policy, while the effect of enterprise scale is not strong. One possibility is that the state of the listed company, the strict supervision. Finally, according to the relevant conclusions, we give some suggestions for how to standardize the accounting policies and strengthen the provision for accounting supervision of the public company, to promote the fast development of stock market.