The Study On The Influence Of Institutional Investors’ Site Visits On Accounting Information Quality

The disclosure of accounting information is the main way for companies to transmit information to the outside and alleviate the information asymmetry between companies and investors.The quality of accounting information will directly affect the investors’ investment decisions,the company’s financing ability and the effectiveness of the capital market.For the disadvantages in information acquisition,investors can not satisfy to obtain information only from the company’s periodic financial reports,so site visits has become an important way to obtain corporate information.Through site visits,institutional investors can actively know the company’s operation and development planning,play a more active role in supervision,improve corporate governance,and promote the quality of accounting information.This paper manually collects data about institutional investors’ site visits from A shares of listed companies in Shenzhen Stock Exchange during 2012 to 2017,and inspects the frequency distribution,research content,industry and regional distribution of the institutional investors’ site visits.In the empirical analysis,this paper studies the impact of institutional investors’ site visits on accounting information quality of listed companies from three aspects: accrued earnings management,real earnings management and earnings information content.This paper finds that institutional investors’ site visits can significantly reduce the company’s accrued earnings management and real earnings management,and significantly increase the company’s earnings information content.And the higher the frequency,the better the inhibition.In the further analysis,this paper finds that the site visits of state-owned companies by institutional investors can restrain the accrued earnings management,but it is difficult to restrain the real earnings management.Conversely,institutional investors’ site visits on non-state-owned companies can significantly reduce the company’s real earnings management.When the company is in a low-level market,institutional investors’ site visits can significantly reduce the company’s real earnings management,and can significantly increase the company’s earnings information content.Overall,in the weak external governance environment,site visits can improve the quality of accounting information.This study is helpful for institutional investors and listed companies to better understand the function of institutional investors’ site visits in the quality of accounting information,and is helpful for companies to improve the quality of accounting information and the management of investor relations.