2003 Fiscal Year Final Research Report Summary
Financial Statements Disclosure and Auditing systems Theory in China-Social Approach-
| Project/Area Number |
14530181
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Fukuoka Institute of Technology |
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Principal Investigator |
WENZHONG Li Fukuoka Institute of Technology, Department of social and Environmental Studies, Assistant Professor, 社会環境学部, 講師 (60341476)
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| Project Period (FY) |
2002 – 2003
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| Keywords | Social Approach / The Philosophy of Auditing / CLAN, CASTE, AND CLUB / Comparative Institutional Analysis / Politics-dependence / Culture-dependence / History-dependence |
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| Research Abstract |
In this study, a social approach was suggested for the research of institutions. In this approach, I assumed that a new institution in a country is established based on the social background of the country, that is, I place a high importance on History-dependence, Political-dependence, and Cultural-dependence, which are considered to influence the characteristics of the institution, in order to clarify the effectiveness and diversity of institutions, pursue the construction of more appropriate institutions, and then improve the social function of these institutions. This study was based on the analysis of the social dependence of institutions.
Using the afore-mentioned approach, I studied the Chinese financial disclosure and audit institution and concluded that the audit institution in China is controlled by political power. The following six factors are considered in the establishment of such an institution : (1)Throughout Chinese history, the nation could be divided into taxpayers, ta
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x collectors, and national inspectors and this agency relationship has survived until now. (2)Chinese politics, economy, and society are bureaucratic, allowing the centralization of power in administration and politics (political parties). (3)The elite in China tend to work for national universities, research institutions, and administrative organizations and they place restrictions on institutions in the private sectors. (4)The people's thoughts are also restricted by historical and political pressures and are dependent on the Chinese government. Therefore, minority political forces cannot get a foothold to acquire autonomy. (5)Private capital in the current Chinese economy is still insufficient compared to the national capital, which thus controls Chinese companies. Therefore, private sectors cannot establish their own audit systems because of the lack of capital. (6)The morality and ethics of Chinese people in general stem from Confucianism. However, as economic globalization proceeds, external ideas are increasingly exerting an influence on the cultural behavior of the Chinese people. Less
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