Returnee Executives and Accounting Conservatism

Based on the data of Chinese listed companies, this paper examines the impact of returnee's executives on accounting conservatism. We find that employing returnee executives can significantly improve accounting conservatism, especially in companies with weak internal control, high proportion of large shareholders and weak investor protection. private enterprises and enterprises with weak external supervision mechanism are more conducive to play the positive role of returnee's executives in improving accounting conservatism. The results show that the employment of returnee executives should be further strengthened under the weak internal corporate governance. In addition, the role of external supervision governance should be brought into play in order to enhance accounting conservatism, thus helping to improve the quality of accounting information and resources rational allocation of securities market under the context of supply-side structural reform. As a result, it can promote steady development of China's capital market and benign operation