An Empirical Study On The Relationship Between Finance Governance And Accounting Information Quality

It’s worse and worse that poor finance governance of Listed Company bring aboutlow quality of accounting information. The reasons of that are intricate, but theinformation asymmetry is the uppermost, which including internal information asymmetryand the information asymmetry exist between internal and external stakeholders. Thefinance governance and accounting information quality are affected by informationasymmetry. It’s of profound theoretical and practical meanings to research the correlativitybetween the finance governance and the accounting information quality from the financegovernance perspective.The paper starts from the rationale of finance governance and the quality ofaccounting information, and researches the correlativity of finance governance and thequality of accounting information through empirical study and theoretical analysis.Firstly, the paper states briefly the contents and methods of the research on the basisof elaborating the research background and Research Actuality.Secondly, the paper analyzes theoretically the influencing factors of financegovernance and the quality of accounting information and the interrelationship betweenthem, and built hypothesis of the research applying the Contract Theory and thePrincipal-agent Theory.Thirdly, the paper substitutes7variables for finance governance and4variables forthe quality of accounting information. It Takes listed companies on Shanghai StockExchange from2007to2011as a sample data, by method of scoring by experts to get thecomposite indexs of finance governance and the quality of information quality. The paperintroduced multiple linear regression empirical analysis method to research thatcorrelativity. The results of the study show that there is a positive correlation between thedebt-to-asset ratio and the quality of accounting information, there is a negativecorrelation between Z index, independent director ratio, auditing committee, board sizeand the quality of accounting information. Liquidity ratio and first shareholder have nosignificant correlation.Finally， according to the results of the empirical research, the paper analyzes the boundedness of the research and relevant Implications and suggestions to providereference for perfecting the structure of finance governance, improve the quality ofaccounting information, and promote our country securities market’s long-term healthydevelopment.