The Research On The Government Of Corporations’ Accounting Information Distortion

Accounting information distortion (AID) problem is a national and global problem. Accounting information (AI) relates to many stakeholders and there have no solution to solve AID problem. This dissertation studies AI from economic views, which include economic person assumption, property rights theory, game theory and information asymmetry theory.In order to solve AID, it’s important to high light clear govern object. AID includes systematic distortion and illegal distortion. Intentional illegal distortion is the key problem that needs to solve. This dissertation uses economic person assumption to analyses the behavior disposition of shareholders, management, creditors and government when they make choices. The trait that avoiding disadvantages make stakeholders like positive information. Property rights theory is used to analyses the influence of incentive policy to stakeholders. In this dissertation, property not only includes tangible but also include intangible assets, such as physical power, mentality and technology and so on. If company can define the contribution each asset make and give the assets owner’s reasonable pay, company can regularize people’s behavior and reduce illegal action. The game theory is used to analyses supervisions’effect. Strong internal and external supervision, such as discovering the illegal behavior timely, strict law and enforcement of law, can deter illegal behavior. Information asymmetry theory can explain external regulators, such as accounting firm, securities institutions and China Security Regulatory Commission (CSRC), the limitation they face in their work. AI is produced by company, so external stakeholders cannot come into contact with every aspect of the company. Some employees in regulatory institutions lack industry knowledge and that will influence regulation effect.On the basic of theory analysis, dissertation use Wanfu Biotechnology (Hunan) Agricultural Development Co., Ltd., Which was listed in2011, as a case to study the way of AI, punishment to illegal institutions. Synthesizes the above analysis, a few policy suggestion was put forward at the last part.This dissertation includes five parts:The first part is introduction. This part comes up with the background, significance, research achievement, innovation point, construction and disadvantages of the dissertation.The second part introduces the concept of AI and AID, which includes the traits, importance of AI and the classification of AID.The third part is theory analysis. Main theories include economic person assumption, property rights theory, game theory and information asymmetry theory.The forth part is case analysis, which introduces the background, method, punishment of Wanfu Biotechnology (Hunan) Agricultural Development Co., Ltd. financial fraud.The forth part is policy suggestions. This part discusses ways to solve AID from views of law, internal governance, accountant and social atmosphere.