Accounting Conservatism and Corporate Governance: An Empirical Analysis from Shanghai Stock Exchange

The determinants of accounting conservatism behaviors of listed companies have been concerned by more and more people. Considering the characteristics of listed companies in China, this paper subdivides the influential factors of accounting conservatism and then uses multi-regression and panel regression methods to make the empirical analysis of the relationship between accounting conservatism and corporate governance. From a sample of listed companies from Shanghai Stock Exchange between 2002 and 2006, we measure the influential factors in terms of corporate governance and financial character. The empirical results suggest that institutional ownership and types of ownership have some influence on accounting conservatism to different extent, but we don't find any significant evidence to support that insider ownership and controlling shareholder have explanation ability to accounting conservatism.