The Analysis on the Relationship between the Equity Incentive and the Accounting Information Quality of Electronic Commerce in China

This study examines the accounting information quality and the relationship between the equity incentive and the accounting information quality of Chinese electronic commerce (e-commerce) companies. Our sample is measured between 2006 and 2009, obtained from the annual reports of Chinese listed companies. Based on the empirical research, we find that the accounting information is more relevance in e-commerce companies than in other companies as a whole, thus the accounting information quality is higher in e-commerce companies too. Besides, the accounting information quality of e-commerce which has the equity incentive is higher than other companies.