Empirical Study on the Quality of Financial Accounting Information's Impact on Economic Performance

This paper uses the evaluation for listed companies' disclosure level by Shenzhen Stock Exchange as the agency variable of financial accounting information quality, including listed firms in Shenzhen Stock Exchange from 2002 to 2006 as our sample, empirically tests the relation between the quality of financial accounting information and economic performance, and the paper also tests if financial accounting information affects economic performance through corporate governance system channel. Empirical results show high-quality financial accounting information does improve economic performance and corporate governance is one of the channels, regardless of Tobin's Q or return on assets or ratio of net operating cash flow to assets as the agency variable of economic performance. But we don't empirically test if there are other channels through which financial accounting information can promote economic performance, this may be one direction We want to research about in future. Therefore higher-quality financial accounting information is of great significance for economic performance.