On Accounting Rent-seeking and Its Management

Rent-seeking is an economic behavior centering on power and is the re-division and transfer of vested interest. In the economic life of China, rent-seeking activity will never disappear as long as there are administrative interferences, privilege and control. In economic transformation, the key to management of rent-seeking is first, to reform present mechanisms to meef the acounting standards, and second, to strengthen the exposure of accounting information to increase transparency of an accounting policy choice, thirdly, to consolidate internal controlling systems, and finally to reinforce external supervision.