Independent Director’s Geographic Distance And Financial Reporting Quality

This paper sets the study sample period from January 1,2011 to December 31,2015,and selects all A-shares listed companies as the research object of this paper during the five-year period.The registered sites of listed companies are collected manually through the annual reports of listed companies,while the addresses of independent directors are collected manually through websites such as Sina Finance and Phoenix Finance and so on.After obtaining the address information,this paper converts the address to latitude and longitude through Baidu map,and then calculates the geographical distance between independent directors and listed companies.The number of geographical distances between independent directors and listed companies collected manually above According to the empirical test of the impact of the geographical distance of independent directors on the quality of corporate financial reports.It is found that the farther the independent director is from the listed company,the lower the financial report quality of the company is.The farther the independent director is from the listed company,the less the number of the independent directors’ meeting will be,which will affect the quality of the company’s financial report,which is the path evidence of the geographical distance affecting the independent director and playing the role of supervision.This paper also collects the data of high-speed railway,airport,and finds that high-speed railway and airport can reduce the influence of the geographical distance of independent directors on the quality of financial report.By means of the regulation effect test,it was found that the opening of high-speed iron The relationship between the geographical distance of independent directors and the quality of financial reports plays a negative role.This paper also considers the independence of independent directors,and finds that even if independence is considered,the geographical distance of independent directors can still affect the financial report quality of the company.This paper also adopts a variety of robustness tests,such as reducing the sample to independent directors with only accounting background.It is found that the geographical distance of independent directors with accounting background can still have a significant impact on the quality of financial reports.Using several variables,such as earnings quality and financial restatement,to measure the quality of financial report,it is found that the conclusion still supports the hypothesis above;after considering the problem of self-selection,use Propensity Score Matching(PSM)method to study whether there is a self-selection problem;introduction of tool variables to test whether there is a possible reverse causal relationship between thegeographical distance of independent directors,and so on.All the above results support the hypothesis in this paper.The findings of this paper reveal the external constraints that influence the independent directors to play a supervisory role,and provide new evidence for the study of the governance effects of independent directors.The companies will be enhanced,this paper gives a reply to these questions;It also enriches the application of geography economics in the study of financial accounting problemsof listed companies,and contributes little to the development of geography economics.The full text is divided into seven chapters.The first chapter is the introduction.This part mainly describes the background and significance of this topic,and elaborates the research ideas and research methods.This part also emphasizes the innovations and possible shortcomings of this paper.The second chapter is literature review and research hypothesis.First of all,this paper summarizes the independent director,geographical distance and high-speed railway opening related literature.The economic consequences of geographical distance of independent directors and the influencing factors on the quality of financial reports are further reviewed in this paper.Summing up the experience of predecessors,we find that predecessors are inadequate.The third part is the research and design.This section mainly describes the interpreted variables,the interpreted variables and variable definitions of control variables.The empirical model,data collection process and data source of this paper are put forward.The fourth part is univariate analysis.In this part,statistical description,T test,Wilcoxon test and Pearson correlation coefficient test are used to describe the variables.Analyze the characteristics of the data,and carry on the preliminary test before the empirical analysis.The fifth part is empirical analysis.On the basis of agency theory,information asymmetry theory and organization theory,this part analyzes the influence of geographical distance of independent directors on the quality of financial report,and confirms the hypothesis in this paper.Collection and implementation of data on listed companies for the period from 1 January 2011 to 31 December 2015,Delete the missing variables,delete the financial industry,winsor data by 1%,and use the multiple regression to verify the hypothesis above,and use the grouping regression to study the impact of the geographical distance of independent directors on the quality of financial reporting when the high-speed railway airport is opened or not.The regulation effect was studied by using the regulation variable of high-speed railway opening.The sixth part is the robustness test.By reducing the range of samples to independent directors of accounting background,replacing the agency variables offinancial report quality,the Propensity Score Matching(PSM)and tool variable method are used to test the robustness.Chapter 7 is the conclusion and enlightenment.Based on the previous regression analysis,this paper summarizes the conclusions of empirical analysis,and puts forward suggestions for users of financial reports and relevant regulatory departments.