Legal Environment,Ultimate Controlling Shareholder And Quality Of Accounting Information Disclosure

Accounting information is an important source of company information.High-quality accounting information can transmit more effective signals to external investors,then the information asymmetry between enterprises and investors will be reduced.It also helps to reduce financing costs,mitigate the problem of low investment efficiency,and protects the legitimate rights and interests of investors.However,with the occurrence of major financial fraud cases such as Hongguang Industrial,Enron and WorldCom,the repeated fraudulent accounting information disclosure fraud scandal not only hurt the confidence of external investors,but also harmed their interests.This also caused the theoretical and practical circles to attach great importance to the quality of accounting information.For China's enterprises,because the country is in the period of economic transition.And the special institutional background leads to problems such as low investor protection level and unsound manager market.Then in the context of such a specific system,how does the ultimate controlling shareholder affect the quality of accounting information disclosure?Does the legal environment of the company affect the quality of the accounting information it discloses?Is the relationship between the ultimate controlling shareholder and the quality of accounting information disclosure and how it is affected by the legal environment?For the current development of China's capital market and corporate governance,These problem should be resolved.However,in the current research,there is little research on the relationship between the ultimate controlling shareholder,the quality of accounting information disclosure and the legal environment.Therefore,based on China's special system background,the research on the relationship between ultimate controlling shareholders,legal environment and accounting information disclosure quality has important theoretical and practical significance.In this paper,the Shen Zhen Stock Exchange A-shares listed companies from 2012 to 2017 were selected as research samples.Then test the relationship between the ultimate controlling shareholders,the legal environment and the quality of accounting information disclosure.The conclusions of this paper indicate that:(1)If the ultimate controlling shareholder has the higher the cash flow right,the quality of accounting information disclosure will be better;(2)If the ultimate control shareholder's separation of the two powers is higher,the quality of the externally disclosed accounting information is higher;(3)When the ultimate controlling shareholder is a state-owned identity,the quality of accounting information disclosure is high;(4)In areas with poor legal environment,the high cash flow right has a positive effect on the quality of accounting information disclosure;(5)In areas with worse legal environment,the negative effect of the separation of the two powers on the quality of accounting infonnation disclosure is significant;(6)Compared with the bad legal environment,the quality of accounting information disclosed by state-owned enterprises in areas with better legal environment is higher.Finally,based on the research conclusions of this paper,corresponding policy recommendations are proposed from the enterprise,investors and governments.