The Audit Committee Characteristics Affect The Quality Of Accounting Information Disclosure

Along with the development of China’s capital market, a variety of marketinformation of listed companies attract wide attention of invertors. And accountinginformation as an important part of market information, it’s quality of information isbecoming more and more important. The quality of disclosed accounting information isone of important reflecting form of accounting activities, while high information disclosurehas great meaning for investors, loaners, government regulator and other users ofaccounting of great significance. Supervising the financial reporting is one of the mostimportant function of audit committee. For this reason, this paper analyses the auditcommittee characteristics how to affect the quality of disclosed accounting information.The article includes two parts: theory analysis and empirical research. theory analysisintroduces research background and significance, present situation and influence factors ofthe quality of disclosed accounting information. Then, the relevant theories show that auditcommittee can reduce agency cost, solve the problem of information asymmetries. Besides,audit committee can improve the quality of disclosed accounting information bysupervising financial activities, auditing financial statements, interacting with management,the internal audit department and the external audit agency. Last, this paper analyses theaudit committee characteristics that scale, independence, professional competence,activeness how to affect the quality of disclosed accounting information.Second, the empirical part, the article selects the2011Shenzhen A-share listedcompany’s annual report data, through descriptive statistics, the mean analysis, multipleregression analysis and other methods were tested the audit committee characteristics howto affect the quality of disclosed accounting information. The results show that the wholeof the quality of disclosed accounting information is not optimistic; the scale of auditcommittee, the independence, the percentage of finance experts are important factor thataffected the quality of disclosed accounting information, but the meeting of auditcommittee is unimportant factor that affected the quality of disclosed accountinginformation. Basing on the analysis above, the paper suggests increase the scale of auditcommittee, enhance the independence, and improve professional competence.