Equity Balance,Enterprise Risk Preference And Accounting Information Quality

The equity division reform of listed companies started in 2005 and was basically completed in 2009.Since then,the equity structure of listed companies has matured and entered the era of equity allocation.With the development of equity reforms,the ownership structure of listed companies has been constantly changing,and the ownership characteristics have begun to shift from centralized to decentralized.However,at this stage,a single dominant shareholding structure remains the norm for most listed companies.The ownership structure of the company determines the distribution of the company's management rights,affects the company's decision-making direction,and plays a decisive role in the company's business development.With the continuous development of the market,the opportunities and challenges that companies face are gradually increasing,and the risk tends to become more and more obvious.However,a large number of companies are not aware of the risks.In order to realize the blind investment expansion of the company's interests,it has caused very serious consequences.As one of the consequences of business decision-making,disclosure of accounting information is also affected by corporate equity and risk preferences.Accounting information usually refers to the financial information published by the company.The company uses the public accounting information to share information with investors.At present,there is a serious problem of information asymmetry between information users and listed companies,which greatly damages the rights and interests of investors.The key to solving this problem is to improve the quality of accounting information.Improving the quality of accounting information can enhance the effectiveness of investor decision-making,improve the company's management,and promote the optimal allocation of resources and sustainable development of the market economy.Therefore,the research on the quality of accounting information has always been the focus of academic research,especiallythe factors affecting the quality of accounting information and how to improve the quality of accounting information.However,unfortunately,only a very small number of scholars are aware of the large number of influencing factors.To the impact of corporate risk preference,no scholars consider the impact of corporate risk appetite on the relationship between equity checks and balances and the quality of accounting information.This article will use the relevant data of listed companies in the A-share manufacturing industry from 2012 to 2016 as a basis to incorporate equity checks and balances,corporate risk appetite,and the quality of accounting information into a unified framework,empirically examining the effects of equity checks and balances and corporate risk preferences on the quality of accounting information.And the influence of shareholding checks and balances on the quality of accounting information under different corporate risk preferences.Based on previous research,this article uses the restatement behavior of the company's annual financial statements as a measure of the quality of accounting information of the enterprise,comparing the number of shares held by the largest shareholder with the number of shares held by the second to fifth shareholders.The ratio of shares held by a major shareholder to the shareholdings of the second largest shareholder to the tenth largest shareholder is used as a measure of the balance of shares.The enterprise's defense distance is used as a measure of corporate risk appetite,comprehensive checks of equity checks and balances,corporate risk appetite and accounting.Relationship of information quality.This article uses stata14 for descriptive statistics,correlation analysis,and empirical testing.The empirical results show that the higher the balance of shares,the higher the quality of accounting information,that is,the checks and balances of other major shareholders on the largest shareholder are conducive to improving the quality of accounting information;the higher the company's risk appetite,the lower the quality of accounting information,ie,lowering the enterprise's risk appetite.Reminding enterprises to pay attention to corporate risks can improve the quality of accounting information.Under different corporate risk preferences,shareholding checks have different effects on the quality of accounting information.Amongcompanies with high risk preference,the effect of shareholding checks on the quality of accounting information is more significant.In response to this,this paper proposes corresponding policy recommendations,including building a reasonable ownership structure,improving the discourse power of small and medium shareholders,establishing a good risk control mechanism,reminding companies to focus on corporate risks,and accentuating the punishment for financial restatement,etc.The corporate investors make the right decisions,promote the healthy development of the company,build a good market,and ultimately better serve the stakeholders such as corporations,investors and creditors.