Studyontheeffectofexecutivecompensationlis Ting Corporationon Accounting Conservatism

In2006China’s new enterprise accounting standards, makes the accounting conservatism principle further improved, and by the attention of relevant schola-rs, accompanied by the2008outbreak of the financial crisis in the world, accounting conservatism is a focal point of attention from all walks of life. The annual financial statements in the disclosure of the2013A shares of listing Corporation, chairman of large steel to19735300yuan annual salary ranking list,followed by the Huayuan Real Estate chairman, chairman of Vanke A. China’s listing Corporation executive pay has been rising, has caused the Minis-try of Finance issued "salary limit order" on executive,has made people reflect on the executive compensation system, and executive compensation and corporate performance and no obvious relevant, but also inspire deep thinking people, and have the kind of accounting conservatism in doubt. Due to the principal agent relationship, the executives to get their reward maximization,the existence of opportunistic behavior of earnings management through its inform-ation advantage,come to whitewash financial statements,this act will bring robustness level influence on the accounting information. In this paper, based on the mechanism,effects of executive compensation research on accounting conser-vatism, has a certain theoretical and practical significance.Research methods used in this paper, the combination of normative and empirical research combined with qualitative and quantitative analysis. In the theoretical analysis part, first at home and abroad on executive compensation and accounting conservatism of the relevant literature review and combing, and on this basis are summarized, and then elaborates on the relevant theory lays the theoretical foundation for this paper,the mechanism of China’s listing Corpor-ation executive compensation affect accounting conservatism analysis. In the empirical part, firstly selects the2009-2013years A shares of listing Corporation accumulated8447data as the study sample, and then to measure the magnitude of earnings management by using the modified Jones model to measure the accounting conservatism, the selection of earnings persistence model, on this basis, the introduction of this paper need variables, and establish the regression model, and finally return to the results analysis. The regression results show that: the positive correlation between listing Corporation executive compensation and earnings management level; the greater the magnitude of earnings management of listing Corporation, the company accounting conservatism level is low; the executive compensation listing Corporation is higher, the lower the level of company accounting conservatism. Therefore, we can draw the final conclusion: China listing Corporation executive compensation is to affect the accounting conservatism by executives of the earnings management behavior. The influence mechanism supported by empirical test.