Empirical Study About The Institutional Environment And Ownership Structure’s Effect On Accounting Information Quality

The healthy development of the securities market cannot live without theauthenticity and reliability of accounting information from the listed Companies.Since the establishment of China’s securities market, although the governmentconstantly standardized the disclosure of accounting information, strengthenaccounting control to improve the quality of accounting information, the listedcompanies’ accounting information quality is generally not high. Serious distortionproblem, excessive earnings manipulation happened again and again. ListedCompanies’ accounting information quality is inextricably linked with theirmanagement. So this paper study from ownership structure in the internal governanceand institutional environment in the external governance of listed Companies, try tofind their effects on quality of accounting information, and puts forward relevantpolicy suggestions to improve the quality of accounting information of listedcompanies in our country.Based on the2007-2009China’s A shares of listed companies as the object, thesurplus back of the discretionary which calculate by using the modified Jones modelas a measure of the quality of accounting information, this paper studies the influenceof the institutional environment, ownership structure on the quality of accountinginformation. Through descriptive statistics and regression analysis on the variables,draws the following conclusions: Firstly, the higher degree of marketization, higherlevel of legalization and lower level of government intervention, the higheraccounting information quality in listed companies Secondly, ownershipconcentration and the quality of accounting information is significant negativecorrelation, the more concentrated of the ownership structure, the lower accountinginformation quality in listed companies; Thirdly, the government-controlled listedcompanies’ accounting information quality is higher than non-government-controlledcompanies’; Fourthly, there is a complementary function in governance effectbetween ownership structure and the institutional environment, good institutionalenvironment can lower the ownership concentration’s negative effect on the quality ofaccounting information; Fifthly, the effect of institutional environment on the qualityof accounting information has a significant difference between thegovernment-controlled companies and non-government-controlled companies, the positive impact of institutional environment on non-governmental-controlled listedcompanies’ information quality is stronger than the effect on the government-controlled listed companies.This paper studies the effects of institutional environment, ownership structureon the quality of accounting information, enriches the study of factors what affect thequality of accounting information, and proposes related policy suggestions to improvethe quality of accounting information in China’s listed Companies: firstly, we shouldimprove the institutional environment; secondly, we should optimize and improve theownership structure, then improve the governance effect of independent directors andestablish the accounting supervision system by all the stakeholders.