Institutional Investors, Corporate Life Cycle And Quality Of Accounting Information

High-quality accounting information must truthfully and accurately reflect an enterprise's profitability and financial situation,which is the basis for effective operation of a company's internal and external governance mechanism.Firstly,high-quality accounting information allows shareholders to supervision of the company,fully maintaining their ability to exercise voting power.Secondly,high-quality accounting information helps to attract funds,because accounting information is an important basis for investors to make decision,so investors tend to choose listed companies with high-quality information disclosure to invest.However,the proxy relationship in the modern enterprises makes the capital owner and the asset operator separate,the owner is no longer personally run the enterprise,so that shareholders can not directly observe the level of management efforts.This information asymmetry gives the opportunity to the agents to maximize their own interests,the managers achieve the interests by taking advantage of profit manipulation and even accounting fraud,greatly weakening reliability of information and transparency of information disclosure in the financial report of the.In addition,many small and medium-sized shareholders,because of their weak strength,are unable to fight against the advantages of large shareholders of information,and further reduce the quality of accounting information disclosure.Institutional investors have professional investment team,professional information collection and analysis ability to make institutional investors better determine the value of corporate accounting information,through the perspective of listed companies,continue to study and supervise the listed companies' accounting information in order to timely and effective to find the problems of the listed companies in the accounting information disclosure.In addition,the strong capital strength of institutional investors can also effectively check and balance and restrict self-interested behaviors of major shareholders,restraining the interests of major shareholders.Finally,the demand for institutional investors of listed companies is also forced to improve the information disclosure to create a good image.Since 2006,institutional investors in China have entered a period of rapid development,with the initial formation of diversified pattern of the securities investment funds dominated,and combination of securities companies,trust companies,insurance companies,qualified foreign institutional investors,social security funds,corporate annuities and other institutional investors.Institutional investors continue to expand their number and size,and diversify their types,and improve their professional ability and overall quality,institutionalization of securities market investment subject tends to increasingly prominent.However,compared with the western developed countries,China's institutional investors are still immature,and there is gap in the number,size or investment philosophy with of the western developed countries,and whether institutional investors can play to improve the quality of accounting information is worth the in-depth study.Based on the above analysis,this paper first summarizes the relevant conclusions of affecting the influence of institutional investors on the quality of accounting information,and finds that domestic and foreign experts have different views on the effect of institutional investors on accounting information.Then,it defines the relevant concepts of the institutional investors from the connotation of the institutional investors,fully analyzing the professional ability,the capital strength and the standardized investment behavior which is different from the individual investors.Then,based on the principal-agent theory,the information asymmetry theory and the corporate governance theory,it has in-depth analysis of the reasons and methods of institutional investors to improve the quality of accounting information.In addition,the study of the relationship between institutional investors' shareholding and the quality of accounting information herein is not limited to the simple linear relationship between the two,but further having in-depth research.From the enterprise life cycle and heterogeneity,the relationship between the proportion of institutional investors and the quality of accounting information is researched herein,broadening the previous research framework,and thus enabling to deeply reveal the relationship between the two.Taking the A-share listed companies in Shenzhen Stock Exchange from 2013 to 2015 as the samples,this paper studies the relationship between the proportion of shareholding of institutional investors and the quality of accounting information from the aspects of financial report reliability and transparency of accounting information disclosure,and further explores the relationship between the two in consideration of enterprises' life cycle and the institutional investors' heterogeneity.This paper studies and finds that the overall shareholdings of institutional investor in China improve the reliability of financial reporting,and improve the transparency of information disclosure.In addition,compared with pressure-sensitive investors in pressure-sensitive institutional investors,the influence of pressure-resistant institutional investors on accounting information quality is greater,and the relationship between institutional investors and the quality of accounting information varies at different stages of growth.