Ultimate Control Right,Internal Control And Transparency Of Accounting Information

In order to carry out the general goal of "resolutely fighting against and resolving major risks" put forward in the party's 19 th congress report,and to prevent the risk from expanding and its chain effects,the CSRC has proposed that the key to the supervision of the capital market is "three stabilities".among them,the requirement of "stabilizing the market" can be met through high-quality accounting information.accounting information,as a weathervane of operating conditions,is of great significance to the transparency of its external disclosure.At present,the uncertain risk factors of China's economic environment are increasing,and financial fraud scandals have never stopped for many years.Therefore,the improvement of accounting information transparency is urgently needed.Accounting information comes from inside the enterprise,and its quality is affected by factors such as the internal control environment of the enterprise,i.e.internal control can maintain or reduce the transparency of accounting information.Therefore,this paper tests the impact of internal control on the transparency of accounting information as the main effect.In addition,cone-shaped control structures are widely existing in listed companies in China,and the three links of accounting information generation,transmission and external reporting will inevitably be affected by ultimate controlling shareholders.From the research status of the existing literature,it can be seen that the previous research is often focused on the study of the relationship between the two,and the research angle tends to be refined and systematic.Few scholars study whether the ultimate control right has a moderating effect on the relationship between internal control and transparency of accounting information.Therefore,taking the above policy background and market background as an opportunity,this paper expands the research perspective to the characteristics of ultimate control right,explores the relationship between the three with rich characteristics of ultimate control right and scientific selection of control variables,which not only enriches the literature on factors affecting the transparency of accounting information,but also helps to reduce the information asymmetry of personal investment,enhance the ability to cope with financial risks and promote the healthy operation of China's capital market,which has certain theoretical and practical significance.In order to deeply analyze how internal control affects the transparency of accounting information,and to explore whether the characteristics of ultimate control right have a moderating effect on the relationship between the two,this paper adoptsthe methods of literature research,normative analysis and empirical research to carry out the following research process: focus the research on the relationship between ultimate control right,internal control and transparency of accounting information,first elaborate the background and significance of the research topic,the ideas and main methods adopted in this paper,and what innovations are there compared with previous scholars' research;Then,the relevant domestic and foreign documents are sorted out and reviewed.The concepts used are defined according to the logic from their own meaning to the unique meaning of this article.The principal-agent theory,the information asymmetry theory and the control right theory are used to explain the relationship among the three,trying to make a reasonable mechanism analysis.Based on this,the assumption direction of this article is put forward,that is,efficient internal control is conducive to the improvement of accounting information transparency.Compared with non-state-owned enterprises,the internal control of state-owned enterprises has less effect on the transparency of accounting information.The ultimate shareholder's control right positively or negatively regulates the relationship between internal control and transparency of accounting information,and the separation degree of the two rights negatively regulates the relationship between internal control and transparency of accounting information.Subsequently,based on the above work,the research hypothesis was made,the data sources were determined,the panel data of China's Shanghai and Shenzhen A shares from 2013 to 2017 were selected,a total of10939 samples were selected,the appropriate regression model was constructed,the selected data were brought into the regression model for empirical test,and then the main variables were replaced for robustness test.Finally,the results of the tests are summarized,suggestions are put forward and future research is prospected.Based on the above research process,the following conclusions are drawn:internal control has a direct positive effect on the transparency of accounting information;In terms of whether the characteristics of ultimate control right have regulating effect,the nature of ultimate control right has regulating effect on the relationship between internal control and transparency of accounting information,specifically,internal control in state-owned enterprises has less positive effect on transparency of accounting information.The structure of ultimate control right also has a moderating effect on the above-mentioned relationship.Specifically,the increase of the ratio of ultimate control right and separation degree of the two rights weakens the effect of internal control on accounting information transparency,whilethe concentration of cash flow right enhances the effect of internal control on accounting information transparency.In view of the above conclusions,this paper puts forward corresponding countermeasures and suggestions,namely,it is necessary for our government and enterprises to further enhance the awareness of internal control of enterprises,improve the internal control system,enhance the awareness of internal control of enterprise managers and employees,improve the legal system related to internal control,and strengthen the enforcement of financial fraud.It is necessary to strengthen the supervision of the internal control of enterprises whose ultimate controlling party is the state,optimize the environment in which accounting information is generated,improve the goal of internal control of state-owned enterprises,improve the overall quality of the staff in the internal control department of state-owned enterprises,set up reasonable positions for accounting personnel,and strengthen the supervision of internal control.To optimize the ownership structure,improve the transparency of accounting information,optimize the refinancing environment,reduce the concentration of control rights,actively cultivate institutional investors,supervise the ultimate controlling shareholders,shorten the control chain between enterprises,and reduce the separation of the two rights.