An Empirical Study On The Relationship Between The Board Of Supervisors Characteristics And Accounting Information Quality

Accounting information, as a window for investors to know about publiccompanies, its quality has an important impact on their financial analysis andinvestment decisions, it can also provide significant gist for charging departments sothey can find the financial irregularities and rule the companies in time. In thecorporate governance system of our country, board of supervisors play an importantrole to ensure that corporate management can effectively protect the interests ofshareholders and employees, as well as shoulder the responsibility of the supervisoryboard and the management of daily business activities. However, when in businesspractice, it is a serious problem that board of supervisors weak sidelined withsupervisory rights. They did not play their role in the corporate governance structure,especially after our country adopted the independent director system abroad whichmakes the position of the supervisory board even weaker.In the year of2013, CPC Central Committee proposed reorganization ofissuance advance registration system. The quality of accounting information plays akey role in the registration system reform. Pre-IPO companies improve the level ofcorporate governance continuously and the supervisory board oversees on accountinginformation effectively in order to improve the quality of accounting informationwhich can also improve the efficiency of the companies on entering the market.It has a good theoretical and practical significance that this paper studies themechanism of corporate governance from the supervisory board governance and thereasons of the public company accounting low quality. This paper first introduces thecharacteristics of the supervisory board, related concepts and features of accountinginformation quality, reviewing relevant researches conducted domestically and abroad, collating their views and comments. Through the method of normative andempirical analysis to study the relationship between the board of supervisorscharacteristics and quality of accounting information, based on related researchdomestically and abroad, this article proposes four explanatory variables from theimpact of the supervisory board of the characteristics of the quality of accountinginformation by this perspective, including the scale of the supervisory board, themembers of supervisory board who did not get salaries, the proportion ofshareholding members of the supervisory board and the board of supervisors meetingtimes. This article also sets up a control variable that is audit opinion. This paperselects the data of Shenzhen Stock Exchange range from2010-2012to conduct theempirical study. Finally, according to the results of empirical research, combinedwith the circumstances listed companies in China, some suggestions are proposed toimprove the corporate governance structure and the quality of accountinginformation.