GEM Listed Company Board Characteristics Impact On Accounting Conservatism

The current economic and social system in the company led to the separation of ownership and information asymmetry and agency conflicts, etc., will hinder economic development and capital markets mature which to some extent. GEM as a country emerging capital markets, the development is not yet mature, the contradictions that exist in the capital market in the sector has become increasingly prominent, which is not conducive to the better development of GEM. The accounting conservatism can alleviate these contradictions, through the provision of high-quality accounting information and other measures to reduce the information asymmetry in the market. In order to better promote the GEM perfect and mature, strengthen the construction of accounting conservatism is very GEM must also be necessary.The Board as a core sector of corporate governance, the development company involved in all aspects have left the board, so the company’s accounting conservatism also increase without the participation of the Board. It can give full play to its supervision and decision-making functions, decision-making management more robust.Especially in selecting accounting policies, managers should urge more in line with the accounting policies of the company’s actual situation, to provide high-quality accounting information, thereby enhancing the company’s accounting conservatism.Therefore, from this perspective study of GEM accounting conservatism, not only enrich our research in this area, but also put forward suggestions for improvement and little accounting conservatism lifting the GEM Board System by this study, so as to better promote the healthy development of the GEM market.This paper selects 2012-2014 sample GEM stock market, based on the model of Basu, adding the size of the board, chairman and general manager of the two jobs concurrently, the proportion of independent directors, board meetings, the Board of Directors shareholding ratio, the average age of the Board of Directors these six variables to measure the characteristics of the board. A more detailed study of perspective, the GEM market, the Board of Directors on accounting conservatism. The resulting conclusions are:(1) the size of the board of directors and accounting conservatism negative;(2) the chairman and CEO CEO duality will improve the robustness of accounting, accounting information that is two jobs concurrently GEM companies to provide more robust;(3) independent directors increased the company can greatly improve the robustness of changes both in the same direction. That is, byincreasing the proportion of independent directors on the board to enhance the company’s robustness;(4) an increase in the number of board meetings and would not improve the company’s accounting conservatism, both regression results are negatively correlated;(5) for the Board of Directors equity incentive can effectively improve the company’s accounting conservatism, namely holding a higher proportion of the Board,which is also higher accounting conservatism; mean age(6) Board members positively correlated with accounting conservatism.The innovations of this paper, based on the GEM of the unique market segment,characterized in that the angle from the board, to study accounting conservatism,relatively new angle. While the board features a breakdown, this paper introduces the average age of the board of directors of the variables to analyze the impact of this important feature of the board of directors of companies listed on GEM soundness.Board come of age this factor increases, we can improve the company’s accounting conservatism, the empirical results of both significant positive correlation. Therefore,we believe that more older board of directors to consider the long-term interests of the company, to make a more robust accounting practices, should be taken into account in hiring directors of this.