Enterprise Life Cycle,Manager Behavior And Accounting Conservatism

BACKGROUNDThe “robustness” of accounting information quality requirements has been around for a long time.In China,during the Jiaqing years,the asset management method of “playing the thick” was popular among Chinese businessmen.When the merchants settled at the end of the year,they will register the purchase price,unsold goods,and stocks and other assets at a certain discount.This asset management method embodies the "stable" financial management thinking.Regarding the definition of accounting conservatism,Watts(2009)suggests that the uncertainty of economic information is the realistic basis for accounting conservatism.Basu(1997)believes that asymmetric recognition of returns and losses is the core requirement of accounting conservatism,assets or The income can only be confirmed and measured if it is basically determined to flow into the enterprise,and the loss must be confirmed in full and timely.Accounting conservatism itself is an important corporate governance mechanism,and the degree of perfection of corporate governance structure will also affect the robustness of accounting information disclosure.Managers are important members of corporate governance institutions,as well as users of internal information and transmitters of external information.In the current domestic and international academic research,the research on the correlation between managerial heterogeneity and accounting conservatism mainly focuses on the personal characteristics of managers,the background characteristics of executive teams,and the power of managers(Liu Yongli,2014;Zhang Zhaoguo et al.,2011).There is little literature on the behavioral characteristics of managers to study the impact of managerial behavior on accounting conservatism.The correlation between managerial behavior and accounting conservatism is the first question in this paper.The enterprise life cycle theory holds that the different stages,there are huge differences in the competitiveness of enterprises,investment and financing needs,organizational structure,and organizational characteristics.The management of the company is the “guardian” who accompany the enterprise from an infant to a young child until the aging and dying.In different stages of the survival and development of the enterprise,the manager will adopt different methods and different internal and external resources and conditions.Means to achieve the value of the company and its own career goals.The dynamic correlation between the dynamic behavior of managers in each life cycle,the managerial behavior and the accounting robustness is the second question in this paper.PURPOSEAccording to the principal-agent theory,the stewardship theory and the behavioral finance theory,this paper divides the manager's behavior into the manager's agent behavior and the manager's overconfidence behavior.The influence of manager's behavior on the accounting conservatism from the static perspective,the manager from the perspective of the enterprise life cycle The impact of the relationship between behavior and accounting robustness is studied in order to provide some effective suggestions for restricting manager behavior under different life cycles,improving accounting information robustness,and improving corporate corporate governance mechanisms.At the same time,enrich and develop the literature research in this field,and broaden the research perspective for the study of managers' behavioral economic consequences and the factors affecting accounting conservatism.MAIN CONTENT AND VIEWThis article is divided into five parts,as shown below:Chapter 1: Introduction.This chapter introduces the research background,research significance,research content and research methods,determines the research ideas of the thesis.Chapter 2: literature review.This chapter defines the key variables such as accounting conservatism,enterprise life cycle,and managerial behavior,and conducts related research on the accounting robustness motivation and related research between enterprise life cycle,manager behavior and accounting conservatism.Review and sort out,analyze and summarize on this basis,and determine the research direction of the article.Chapter 3: Theoretical Analysis of Enterprise Life Cycle,Manager Behavior,and Accounting Robustness.This chapter introduces principal-agent theory,stewardship theory,and behavioral finance theory,and analyzes the mechanism of managerial behavior and accounting robustness,as well as the mechanism of enterprise life cycle,managerial behavior,and accounting conservatism,laying the foundation for research hypothesis.Theoretical basis.Chapter 4: Empirical Analysis of Enterprise Life Cycle,Manager Behavior,and Accounting Conservatism.This chapter proposes research hypotheses based on theoretical analysis,defines variables,constructs empirical research models,conducts multiple regression analysis,and analyzes and summarizes regression results.At the same time,construct a robustness test model and conduct a robustness tChapter 5: Research Conclusions and Policy Recommendations.Based on the results of literature research and empirical analysis,this chapter summarizes the overall conclusions of the full text,and on this basis,puts forward the countermeasures and suggestions to regulate the manager's behavior,improve the accounting conservatism,and expound the possible future research directions.The main conclusions of this paper are as follows:(1)The manager's agent behavior is negatively related to the accounting conservatism,that is,the manager's agent behavior is easy to generate self-interest,opportunism and other agency behavior motives,which impairs the soundness of financial reporting;(2)Managers' overconfidence and accounting conservatism are negatively correlated,that is,managers' over-confidence psychological cognitive bias will reduce the robustness of accounting information;(3)The behaviors of managers in different life cycle of enterprises have dynamic differences.The level of managerial behavior in the growth period and the recession period is significantly higher than that in the mature period.The degree of overconfidence of the growth managers is significantly higher than that in the mature and recession periods;(4)The influence mechanism of different life cycle manager's behavior on accounting conservatism is significantly different.The agency behavior of managers and managers' overconfidence behaviors will significantly reduce accounting conservatism,mature managers' agent behaviors and managers.The correlation between overconfidence behavior and accounting conservatism is not significant,and the agency behavior of managers in the recession period will significantly reduce accounting conservatism;According to the research conclusions of this paper,combined with the perspective of enterprise life cycle,the article starts from the three stages of growth,maturity and recession,and proposes policy recommendations for establishing manager behavior learning mechanism,manager behavior guiding mechanism and manager behavior constraint mechanism.Improve the managerial behavior governance mechanism,safeguard the interests of investors,and improve the stability of accounting information.CONTRIBUTIONSThe research in this paper is based on the perspective of the life cycle of the enterprise,and studies the motivational relationship between managerial behavior and accounting conservatism.The main contributions are reflected in the following three aspects:(1)In terms of managerial behavior research.This paper expands the traditional research mode of studying the economic consequences of managers' behavior from a rational or irrational perspective.At the same time,rational and irrational manager behaviors are used as explanatory variables,and they are included in the empirical model to study the static and dynamic correlation between managerial behavior and accounting conservatism.This paper is rich in the study of managerial behavior and develops research literature on managerial behavior and managerial overconfidence.(2)In the study of the causes of accounting conservatism.Traditional research on the causes of accounting conservatism is mostly a static perspective.This paper joins the dynamic research perspective of the enterprise life cycle,and divides the research samples of listed companies into growth,maturity and recession,while studying the whole sample and each life.The impact of managerial behavior on accounting conservatism under the cyclic subsamples enriches and develops the literature on accounting robustness motivation.(3)In terms of research methods.This paper uses one-way ANOVA to study the correlation between managerial behavior and the life cycle of managers,and empirically analyzes the mean difference between managers' agent behaviors and managers' overconfident behaviors in the growth,maturity and recession periods.In addition,in the robustness test section,this paper selects the total asset growth rate as a tool variable to test the endogeneity of managers' overconfidence on accounting conservatism.This paper provides a research method for subsequent related topic research.