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Discretionary Accruals Optimization of Accounting Information Transparency

Jie Yang, Limeng Ying

Abstract


With the outbreak of the Asian financial crisis, the accounting information transparency of listed companies becomes the focus in both theory and practice. In response to this problem, this assay proposed discretionary accruals optimization of accounting information transparency and studied the accounting information transparency of listed companies. As the accounting information transparency could not be substituted with simple individual proxy indicators, this paper tried to measure the accounting information transparency with the proxy variable of Jones model measurement, located the nondiscretionary accruals in the function of accrual operating revenue and fixed assets, located the balance between total amount of accrued profit and nondiscretionary accruals in the discretionary accruals, and then optimized the Jones model. The simulation experiment showed that the model built in this paper was of certain reliability and strong stability.

Keywords


Discretionary accruals optimization, information transparency, IT acceptance

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