Executive Power、Internal Control And Accounting Information Quality

Securities market requires companies to disclosure their accounting information, ensuring that the outside world can get the information of the enterprise what they need. Accounting information as a business langauge is not only the means to solve the contradictory between enterprise agent but also the key to promote the securities market functioning.To sum up,the level of accounting information quality will directly lead to different economic consequences. The SEC as the securities supervision and management of the highest institution has pointed out, "the core of the securities legislation is supervising the enterprise expose its real operating conditions, financial results and other information, at the same time prevent the securities fraud, maintain the capital market order". In recent years, not only relatively mature capital market but also the emerging capital markets explode the financial frauds frequently,resulting in the damage to the investment confidence of investors, meantime hindering the healthy and orderly development of capital market. To restore the credibility of the capital market and rebuild investor confidence, countries headed by the United States began to attach importance to the company’s internal control effect, enacting a series of legal provisions on enterprise internal control system, to ensure the quality of information disclosure. In drawing lessons from foreign experience and combining with China’s national conditions, the ministry of finance with the other four ministries issued "the enterprise internal control basic norms" in 2008 and then promulgated three types of enterprise internal control guidelines issued in 2010, which include 18 application guidelines, evaluation guidance, and audit guidelines.Internal control is a kind of strategic institutional arrangements, to alleviate enterprise agency at all levels, improve the production management environment, control of its internal management risk, the ultimate goal is to improve the quality of accounting information. In other words, the government require companies to establish and implement the internal control is to boost the enterprise reasonable guarantee the quality of accounting information provided by foreign targets, etc. But, in the whole process of production and operation of the enterprise, management layer situating core executive power structure not only is the enterprise formulation and implementation of internal control system, but also accept the control of the internal control system, then the executives with the dual contradiction identity will set up fair formulation and implementation of internal control system, or for its own interests will be a kind of the institutional arrangement of themselves ? Based on the above questions, the core of this paper is to investigate the relationship among the executive power, the internal control and accounting information quality. First verify whether effective internal control helps to improve the quality of information disclosure of enterprises, and then this paper makes a research on how the "executive power" will impact the relation between internal control and the quality of information disclosure, a positive adjustment or reverse adjustment or has no effect. The above two points are the core of this paper.The empirical regression results in this body text indicate that:(1) the internal control and accounting information quality is strong positive correlation, namely the more effective internal control, the higher the quality of accounting information;(2) the executive power will adjust is the positive role in internal control of accounting information quality.