Influence Of Tmt Characteristics Of Listed Companies On Accounting Conservatism Study

As an important accounting principle, accounting conservatism is on a hot spots of the accounting theory research, playing an important role in guiding accounting practices. In recent years, with the introduction of fair value measurement, some foreign scholars expressed their doubts on the principle of accounting conservatism, they believe that it cannot a true fairly reflect the value of the assets, pushing the conservatism principle which has a history of five hundred years to the forefront in dispute. However, there still exits many voices in the academia of supporting the principle of accounting conservatism, some scholars use empirical methods to demonstrate that accounting conservatism can resolve practical issues such as corporate governance, adhere to the practical application of accounting methods. After the2008global financial crisis, some scholars found that the the company which use the prudent accounting policy in the crisis survived, proving the important role of accounting conservatism in corporate governance applications. This shows that before the appearance of the measurement attribute which balance the two parties, accounting conservatism principle has the need of its existence. Since the implementation of new accounting standards in2007in China, the use of new accounting standards among listed companies became matured, when the new accounting standards is the convergence of international accounting standards, what it has influenced the level of accounting conservatism of listed company in China? Besides, with the emergence of different types of corporate governance issues, the Executive team as the main body of corporate governance, its features play a crucial role in the development of the strategy in the choice of accounting policy of the company,and affects the degree of stability of the company in the acceptance of information process. According to senior ladder theory, what different characteristics will have impact on the degree of robustness? With these questions, this paper mainly conducts an empirical study on the effects of senior management team features on accounting conservatism.Firstly, after reviewing the domestic and foreign research literature on accounting conservatism and high league team, we find that in the study of the accounting conservatism, the differentiation of conditional conservatism and unconditional conservatism is the prerequisite of reaching a reasonable conclusion, thereby study the degree of accounting conservatism on the prevalence of fair value in China today, studies on the cause of accounting conservatism has been more mature, the current research focus on influencing factors and economic consequences. This paper selects top management team characteristics on accounting conservatism, which has rarely been studied. In the study of senior management team, the research on the characteristics of team’s background to enterprise growth is more mature. According to the upper echelon theory, in the process of the the final effect implementation of top management team, the decision making process plays a decisive role, therefore this paper studies the relations between top management team characteristics and accounting policy choice.Secondly, this paper further discussed the connotation, cause, measure method of the accounting conservatism and the related concepts of top management team, the definition of the cannotation of top management team and the classification of top management team characteristics. Clearly defining the related concepts, and then incorporate with the principal-agent theory, contract theory, management control theory as well as the upper echelon theory theory, thus preparing the basis for the following theoretical analysis and empirical research.Thirdly, combined with the theoretical basis and the current situation, this paper conducts a analysis of the accounting system background and corporate governance environment, discussed the relations of top management team characteristics, leadership, ownership structure and accounting conservatism. Then gives the analysis and interpretation, providing sufficient basis for the hypothesis put afterwards.This paper selects all Shanghai and Shenzhen listed companies’data from2009to2011, conducted descriptive analysis and regression test according to the hypothesis, and then arrives at some conclusions:nearly all the listed companies show an overall accounting conservatism in three years.At the same time, the average age of top management team and accounting conservatism has a significantly positive correlation; the average education level of top management team has a positive influence on accounting conservatism, but is not significant. However, the average tenure of top management team showed negative correlation with the accounting conservatism. As the shareholding ratio increases, accounting conservatism degree is reduced greatly, which is consistent with the hypothesis that the structure of the two duty duality of the leadership did not improve the accounting conservatism degree, thus puts forward the new ideas based on the actual situation of leadership structure.Finally, this paper draws the conclusions according to the results of regression results, and puts forward reasonable policy suggestions.