Study On The Behavior Of Accounting Policy Choice Based On The Transfer Of Corporate Contrrol

Accounting earnings information, affected by the real economic business,accounting standards and other constraints, is also affected by the subjectiveprofessional judgments of accounting staff in some degree due to the existence ofaccounting policy choice. It is such subjective judgments that lead to the existence ofaccounting earnings information maneuverable space. On the stock market, accountingearnings information of the listed company affects the interest of investors, management,creditors and other stakeholders. Motivated by their own interest, the disclosers ofaccounting information are likely to manage earnings with accounting policy choice.This paper takes the transfer of control-a common event on the stock market as the mainsubject and probes into the accounting policy choice behavior of China’s listedcompanies in the transfer of control.First, the author compares the typical definitions of accounting policies made bydomestic and foreign authorities. Based on the compare, the author defines accountingpolicy and accounting policy choice and analyzes the causes of accounting policychoices. The impact of accounting policy choices from various stakeholder groups wasalso introduced. The paper also analyzes the definition, origin and configuration ofcontrol and the type of control transfer.Second, the author make research on two most important types of transfer ofcontrol——controlling shareholders and senior management to change the accountingpolicy change in choice behavior. For research on the relevant accounting policy choiceof the change in the form of controlling shareholders transfer control, analyze theprevalence of the dual principal-agent problem in listed companies, using game theoryelaborated on the motivation of major shareholder against minority shareholders and theaccounting policy choice motivated during the change of the controlling shareholder inChina’s listed companies. Then empirical research methods are used to analyze therelevant accounting policy choice during the change of the controlling shareholder inChina’s listed companies. The results confirmed the intensity of accounting policychoice increased in anticipation of the transfer of control strength. And different levelsof surplus lead to different directions accounting policy choice. Moreover，accountingpolicy choice are different between different ownership structure of enterprises. The author makes a case study on the transfer of control caused by the personnel changes ofsenior mangers. And the author finds that the new managers use accounting policychoices to cut report surplus down significantly in that year, in order to avoid assumemanagement responsibility for the former executives. At the same time, the accountingpolicy choices confirm the factors that may reduce the surplus ahead of time anddeferred the current earnings to get ready to increase profits after the change.Finally, based on the problem founded in the study, the author puts forward policyrecommendations and states the innovation and weaknesses in this paper.