The Empirical Research Of The Relationship Between Spontaneous Accounting Changes And Supervision Contract Theory

Comparability is one of the accounting information quality characteristic, it can help the users of accounting information compare the similarities and differences between the two types of economic phenomena. Because of the unpredictable economic climate, accounting policy cannot be set in stone. In order to truly reflect the comparability of the enterprise economic activities, enterprise accounting standards give manufacturers have the autonomous right of choice of accounting policies. On the stock market in China, the phenomenon of spontaneous change in accounting policies is clear. And many enterprises which spontaneously change accounting policy is not simply for the purpose of improving the quality of accounting information. In order to earnings management, many enterprises change the accounting policy. In order to prevent enterprises from using the voluntary accounting policy change for earning management, the enterprise internal, certified public accountants, government departments have been monitoring. These regulatory contracts, in turn, constrain the enterprise anomaly voluntary accounting policy change. This article is studying the relation between the internal and external regulatory contract and the change of voluntary accounting policy. By empirical analysis, further clarify the impact of regulatory contract to the spontaneity accounting policies.This article firstly reviewed the literature about the accounting policy change factors, the relationship between the accounting policies spontaneous changes and regulatory contract. On the basis of theoretical, we do the research based on A-share listed companies in China. Followed by defining the concept of the accounting policy change, the subject of regulatory and the research object. By analyzing the rent-seeking theory, the contract theory and the economic consequences theory, explain the reason that why connecting the regulatory contract to the accounting policy change. And lay the theoretical foundation of the following assumptions and empirical analysis. Then from the internal regulation and external regulation’s perspective to analyze the relation between the accounting policies changes and the regulation contract and Put forward the corresponding assumptions. Finally this article combined the theoretical analysis and empirical results to make a conclusion, then provide some recommendations for the improvement of the spontaneous accounting policies change.Research methods used in this paper is theoretical and empirical studies combined. First of all, this article analysis Chinese listed company voluntary accounting policy change situation, and review the company’s voluntary accounting policy change and supervision contract theory literature, and then put forward the theoretical assumptions about the correlation between the company’s voluntary accounting policy and supervision contract through theoretical analysis. After that, assign1to the voluntary accounting policy change and assign0to not voluntary accounting policy change. Next, define the regulatory indicators as independent variables. At the same time, build models by selecting other factors which may have an impact on enterprises’ voluntary accounting policy change as control variables, after making the descriptive statistics. Detect the correlation between the contract supervision variable. Finally, draw the regression coefficients of the variables in the model through the binary Logistic Regression. We can also get the result by robustness test.This article can be divided into six parts. The first part is an introduction, in which mainly elaborated the background and significance of this article, we also introduce the methods in this part, and construct the basic framework of this article. The second part is the review of literature, from the perspective of the Internal and external supervision. In this part, we reviewed the study about the effectiveness of the accounting information management supervision from the point of the independent directors、supervisory board、the creditor and the government And study on the regulatory effect of voluntary accounting changes to manage surplus. The third part is the theoretical analysis about voluntary accounting changes and regulatory contractual. In this part, the article mainly introduce the concept of spontaneous accounting changes, an overview of the regulatory body and the relationship between the spontaneous accounting changes and regulatory contract. The fourth part is the theory analysis and hypothesis of the spontaneous accounting changes and regulatory contractual. The fifth part is the empirical analysis based on the samples selection. With the construction of model, we make a reasonable explanation of the empirical results. The sixth part is a conclusion, then put forward some policy recommendations, and find out the weakness in this article for a better research in the future to reduce the irregular occurrence of spontaneous changes in accounting policies.