Evolution of Institution,Legal Protection of Investors and Accounting Conservatism

This paper attempts to reveal the inherent logic of conservatism historical evolution,which is an important characteristic of accounting information quality with the capital market system evolution and the increasing of investor protection.This paper shows that: before 2007,with the changes in China's capital market system and the increasing of investors protection,accounting conservatism in China's listed companies shows the corresponding progressive features.But with the new accounting standards implemented in listed companies,accounting conservatism is no longer significant since 2007,and the expansion of the scope of application of fair value accounting may have played a negative role on conservatism.The policy recommendations are put forward: when the revision of accounting standards aims to improve accounting information relevance,the other qualitative characteristics of accounting information need to be paid attention.Improving the quality of accounting information not only relies on accounting system reform,but also relies on the building of law,corporate governance and other infrastructure system facilities.