Research On Institutional Investor Heterogeneity And Accounting Robustness

After the establishment of the modern enterprise system, an important problem in the listed companies is the separation of ownership and management rights, which leads to the principal-agent problem of the listed companies. In order to solve the principal-agent problem and reduce the agency cost,the listed companies have adopted a series of measures to improve corporate governance. Since 1980s,institutional investors have played an important role not only in the capital market, but also in the governance of listed companies. In the development of institutional investors in China is relatively slow, but with the development of the capital market,institutional investors began to show a strong momentum of development, as of the first half of 2016, the proportion of institutional investors accounted for approximately 58.91% of the proportion of the market value of circulation. In addition,accounting conservatism is not only an important principle to deal with accounting affairs, but also an important condition for the quality of financial information. The conservatism of accounting policy helps to reduce the problem of information imbalance between shareholders and managers, and effectively alleviate the agency problem between them, and then improve the level of corporate governance. Through the above analysis, the paper can find that institutional investors and accounting conservatism has an important impact on improving corporate governance level.Therefore, on the basis of previous research on the relationship between accounting conservatism and institutional investors, we led to make further inquiry.This paper mainly from the institutional investors' point of view,to study of institutional investors on the impact of accounting conservatism, and taking into account the nature of the property rights between the two regulatory roles. In this paper, we choose the balance panel data of five years from 2011-2015, using Givoly and Hayn model to measure accounting conservatism. First of all, to study the relationship between the whole institutional investors shareholding ratio and accounting conservatism; Secondly, according to the different types of institutional investors, divided into two types of stress suppression and pressure sensitive, then analyzed the two types of institutional investors and accounting conservatism by multiple regression; finally, the nature of property rights introduction to institutional investors and accounting conservatism, and verify the influence by the nature of property rights on the relationship between the two. The results show that institutional investors play an active role in improving accounting conservatism. The positive impact of institutional investors on accounting conservatism is mainly the role of pressure-suppressing institutional investors, while the relationship between pressure-sensitive institutional investors and accounting conservatism is a negative impact; the nature of state-owned property rights will significantly reduce the positive to promote the effect of institutional investors on accounting conservatism, will significantly increase the pressure resistant institutional investors on Accounting Conservatism positive role, while the relationship between the pressure sensitive institutional investors and accounting conservatism has no significant moderating effect.