The Empirical Study On The Relationship Between Board Governance And Earnings Quality

Board governance is the core content of corporate governance,and the board plays a key role and be respongsible for the quality of the accounting information,due to there are some difference on composition and power division of among the listed companies’board,it influences to various extent to earnings qulity and quantity.Therefor,through analyses for influence factor of board governance on earnings quality,and apply the analysis to amend and amplity the board system,it can guaranty a degree of earnings quality.In the first place, this paper review the correlation theory on board governance and earnings quality,then make a contrastive analysis on Earnings Quality Evaluation Models, finally we choose the Amend-DD Model. Then classified the influence factor of board governance onearnings quality by board characteristics,the thesis probes into composition of board governanceincluding scale,independence,motivation and behavior,and access ten variables from those four dimensions to make a standardized research on earnings quality.Then discourse policies,regulations and function situation about board governance and accounting earnings.Based on the above theory, the research hypotheses were described,and choose absolute residual error of Amend-DD Model as substitution variable of earnings quality, The explanatory variables, control variables were defined and described measurement method,then build a multiple regression model.Due to the background is the split-share reform and the new accounting standards for the full implementation, so in the empirical study selects Shanghai and Shenzhen300index constituent stocks in the stock market as sample, the empirical analysis is based on the data in2008-2011range. The empirical study on the relationship between board governance and earnings quality by taking the filtered data into multiple regression mode.It turned out that borad size, the finance director proportion, independent director proportion,zero salary director proportion,the change of executive, shareholding ratio of directors of board governance have obvious effect on earnongs quality. The improvement and adaptation of these factors will indirectly guarantee the high earning quality,perfect board governance systerm and enhance the governance efficiency.In the final part of this paper put forward the corresponding policy suggestions based on the research results, andpoints out the shortcomings in the research.