This article makes a detailed analysis of the relationship between corporate governance and financial accounting information under the framework of corporate governance, with the help of the principles of information ...This article makes a detailed analysis of the relationship between corporate governance and financial accounting information under the framework of corporate governance, with the help of the principles of information economics and institutional economics. By taking into considerations of the agency issues arising form the separation of the managers from the owners under the modem corporate environment in order to solve agency conflict and to realize right restricting and benefit grouping. The mechanism of financial accounting information produced internally from the mechanism of corporate governance. Based on this understanding, this article discusses how financial accounting information works in both internal and external corporate governance mechanism. And explores the application mechanism of financial accounting information associating with stock price and introduces the function of corporate governance to guarantee the quality of accounting information respectively, respectively paying particular emphasis on the two goals of financial accounting-the decision useful and the accountability approach.展开更多
In this study,we examine the effect of the Social Security Fund on auditor litigation risk.Using audit fees as a proxy for auditor perceptions of litigation risk,we find that the Social Security Fund significantly red...In this study,we examine the effect of the Social Security Fund on auditor litigation risk.Using audit fees as a proxy for auditor perceptions of litigation risk,we find that the Social Security Fund significantly reduces auditor litigation risk.Furthermore,we show that the Social Security Fund influences auditor litigation risk through reducing both the audit risk and the business risk of public companies.In addition,the impact of the Social Security Fund for reducing auditor litigation risk is more obvious in the group of firms with low levels of internal governance,which indicates that the Social Security Fund plays an important governance role as a high-quality institutional investor.In summary,we verify that the Social Security Fund,when acting as an institutional investor,plays an important role in corporate governance,and that it helps to reduce auditor litigation risk.Our results provide empirical support for expanding the governance role of the Social Security Fund as an institutional investor in China’s A-share market.展开更多
文摘This article makes a detailed analysis of the relationship between corporate governance and financial accounting information under the framework of corporate governance, with the help of the principles of information economics and institutional economics. By taking into considerations of the agency issues arising form the separation of the managers from the owners under the modem corporate environment in order to solve agency conflict and to realize right restricting and benefit grouping. The mechanism of financial accounting information produced internally from the mechanism of corporate governance. Based on this understanding, this article discusses how financial accounting information works in both internal and external corporate governance mechanism. And explores the application mechanism of financial accounting information associating with stock price and introduces the function of corporate governance to guarantee the quality of accounting information respectively, respectively paying particular emphasis on the two goals of financial accounting-the decision useful and the accountability approach.
文摘In this study,we examine the effect of the Social Security Fund on auditor litigation risk.Using audit fees as a proxy for auditor perceptions of litigation risk,we find that the Social Security Fund significantly reduces auditor litigation risk.Furthermore,we show that the Social Security Fund influences auditor litigation risk through reducing both the audit risk and the business risk of public companies.In addition,the impact of the Social Security Fund for reducing auditor litigation risk is more obvious in the group of firms with low levels of internal governance,which indicates that the Social Security Fund plays an important governance role as a high-quality institutional investor.In summary,we verify that the Social Security Fund,when acting as an institutional investor,plays an important role in corporate governance,and that it helps to reduce auditor litigation risk.Our results provide empirical support for expanding the governance role of the Social Security Fund as an institutional investor in China’s A-share market.
