Research On The Impact Of Corporate Management Characteristics On Accounting Conservatism

Conservatism principle is an important principle of our business in the current accounting standards,accounting practice has a very important role as guidance.Therefore it has been the focus of accounting theoretical study.However,as the fair value has been introduced into the accounting measurement,scholars from various countries began to questioned the conservatism principle.Accounting conservatism principle may not reflect the true value of the result of assets.Although there are many questions,there are still many scholars support accounting conservatism.They used empirical methods to prove the soundness of accounting has a role in solving the practical problems of corporate governance aspects.After the economic crisis in 2008,scholars have found that prudent accounting policy of the company survived the economic crisis survive.Once again proved that accounting conservatism play an important role in the survival.In the ever-changing and complicated situation accounting conservatism of its existence is necessary.A variety of governance issues exists in modern enterprise.Corporation management is the subject of corporate governance,if you want to solve the problem you should start with the manager.By analyzing the high order,agency,contract theory these signals and the basic theory of economic management,we know that corporation management will play a vital role in accounting and business development strategy.Its own characteristics affect their choice,and there own characteristics will further affect the accounting policy choice.Thus,different characteristics will also affect accounting conservatism.The paper studies the corporation management age,gender,education level and other characteristics will produce what kind of impact to the accounting conservatism.Firstly,we summarized the existing research literature.We found that the current research directions and achievements are mainly concentrated in influencing accounting conservatism factors and consequences.Few studies for corporation management characteristics on accounting conservatism,and few studies for the definition and characteristics of people on the corporation management.Secondly,the combination of high-end,agency,signals,and contract theory theoretical analysis,we found that corporation management to affect accounting conservatism can not be ignored.Its characteristics will affect their judgment and policy choices.Therefore,this article intends to depart the impact of corporation management characteristics on accounting conservatism.After studying the results of previous studies and theories we select the age,gender,educational background and holdings as the characteristics of corporation management.We defines the corporation management includes: chairman,president and financial director.There are many models for accounting conservatism,this paper is studying and learning Khan and Watts(2009)model.After measured the C-Score,build a model for measure the impact of age,gender,educational background and shareholding on accounting conservatism.This paper selects 2010--2014 five years from the Shanghai and Shenzhen main board listed company data.The statistical analysis and regression analysis found that: this sample existed accounting conservatism.Management's age,education has a significant positive correlation with accounting conservatism.Gender executives and chief financial officer of shareholding has no significant correlation with accounting conservatism.According to the final conclusions we propose suggestions for the management team building.