1、东北石油大学本科生毕业设计（论文） I Managers Bad Accounting Behaviors of Listed Companies in China Abstract Managers unintentional or intentional bad accounting behaviors will result in poor quality of accounting information of listed companies, making a great extent to interfere with investors, causing confusion i
2、n the capital market, is not conducive to reflect the performance management responsibility. Research on Managers bad accounting behaviors of listed companies is of great significance to improve management, optimize the allocation of social resources. This paper respectively discusses the manifestat
3、ion and the causes both of managers unintentional and intentional bad accounting behaviors. It also puts forward recommendations to prevent managers bad accounting behaviors of listed companies in China, so as to safeguard the interests of stakeholders and provide good environment for capital market
4、 by improving the efficiency and accounting information quality of listed companies. Key words: Bad accounting behaviors； Managers； Listed companies； the quality of accounting information INTRODUCTION Accounting behaviors refer to the course of conduct highly relevant to accounting information gener
5、ation, processing and transmission. Accounting behaviors have a significant impact on budgeting, performance evaluation, cost control and decision-making (Hopwood, 1974). From the micro view, accounting behaviors include accounting organization, business accounting, and internal accounting controls.
6、 In the accounting process, managers who master business decision-making power and control are important participants in accounting policy choices, decision-making of significant accounting issues, etc. Thus the quality of accounting information of listed companies depends largely on the managers be
7、havior. We call the managers actions and manifestations involved in corporate accounting practices as managers accounting behaviors. Managers are usually referred to the human capital owners who join in a business contracts with their management talent and really own the residual rights of control (
8、XIE, 2005). Managers are responsible for determining organizational goals, formulate strategies 东北石油大学本科生毕业设计（论文） II to achieve stated objectives, monitor and explain the external environmental condition, and make decisions on issues affecting the entire organization. General speaking, managers of C
9、hinese listed companies cover president, vice president, department managers, chief financial officer, chief engineer and so on. The result of accounting behaviors is to produce accounting information, thus accounting practices and accounting information has a direct causal relationship. Standard ac
10、counting practices provide true and full accounting information and meet various needs. Nonstandard accounting behaviors will produce false, incomplete accounting information, which ultimately disturbs or even misleads those in need of accounting information to use. Such irregularities may be due to
11、 two aspects, one is deviations from accounting objectives or losing the objectives because of peoples bounded rationality, which is summarized as non-subjective bad accounting (ZHANG, 2005). The other is negative affect on accounting information generation and disclosure for certain bad intent or p
12、urpose, which accordingly may be called intentional bad accounting. So, management accounting practices can also be divided into two categories: one is the management non-subjective bad accounting behaviors, the managers involved in the process of accounting practices have not any bad intentions but
13、 are constrained by bounded rationality, which lead to low quality of accounting information, it is not malicious, and thus may be called the managers unintentional bad accounting behaviors； the other is manager intentional bad accounting behaviors, which means the managers participate accounting pr
14、actices just for their own interests or certain bad purpose. An analysis shows that management is the most fundamental body of financial reporting fraud, and is the real source of financial reporting fraud (CHEN, 2009). This paper discusses the specific manifestations of managers unintentional and i
15、ntentional bad accounting behaviors respectively, analyzes their causes and proposes recommendations against these two types of managers bad accounting behaviors of listed companies in China, which is to promote listed companies to improve management level and accounting information quality. 1. THE
16、MANIFESTATION AND CAUSES OF MANAGERS UNINTENTIONAL BAD ACCOUNTING BEHAVIORS IN CHINAS LISTED COMPANIES 1.1 The Manifestation of Managers Unintentional Bad Accounting Behaviors 东北石油大学本科生毕业设计（论文） III The performance of manager unintentional bad accounting can be divided into the following three aspect
17、s: First, the accounting organization is less rigorous. Accounting organization is the basis of accounting. From the micro view, it mainly covers the development and implementation of enterprise accounting system, setting up accounting body, arrangement of accounting personnel and selecting accounti
18、ng methods, which is to ensure the rational and effective for accounting work. But in fact some listed companies accounting basic work has weak links, the most prominent are: the quality of some companys accounting staff is not high, resulting in accounting arbitrary, unclear procedures, serious err
19、ors, accounting data missing； some companys accounting staff is not equipped well, accounting methods are not suitable for the unit, making accounting disorder and inefficient. Second, the accounting process is less standardized Mainly include: managers unintentional choices of accounting policies a
20、re not applicable, resulting in accounting information has less relevant to information users need for economic decision-making； the content of cross-company accounts imputation, books set confusion, accounting treatment was not standardized, leading to mismatch of financial reporting and financial
21、activities, accounting information is not a true reflection of the company operation. China securities news, the Audit Commission reported on May 20, 2011 that, accounts in Aluminum Corporation of China is not standardized, so although it acquired a variety of enterprises, the integration situation
22、is not satisfactory. Third, the internal accounting control is a mere formality. The main internal accounting controls include internal accounting management system, accounting personnel, job responsibility system, the financial processing system, the internal containment system, audit system, quota
23、 management system, measurement inspection system, and property inventory system, the financial revenue and expenditure approval system, cost accounting system , financial analysis, risk early warning system. However, some managers design of approval authority and approval process on financial reven
24、ue and expenditure is unreasonable, leading to false accounting information； delivery of accounting documents in some companies is not scientific, resulting in inefficient accounting； Job separation in some companies is not clear, causing accountant misrepresent accounting information； some companie
25、s internal accounting control system is designed by copying others, does not apply to their characteristics and requirements for production and management； some companies feasibility studies on foreign investment is not sufficient, resulting in corporate decision-making mistakes, increasing risks an
26、d grim financial situation. “New Century Weekly” reported that the National Audit Office claimed in August 2010 after auditing: China Steel Group has financial management confusion and other major problems such as high-risk investment, huge debts. It means there are significant internal accounting control deficiencies in CSG, and there is little internal control and regulation according to the enterprise itself.
