Institutional Environment,Accounting Institutional Changes and Value Relevance

Based on the institutional changes of Accounting Regulations for Listed Companies and Accounting Regulations for Business Enterprises,this paper investigates how the governance environment affects the efficiency of the accounting system' changes with the empirical model of value relevance.The paper provides new evidence that how the governance environment influences the institutional changes and conclusions indicate that consequence hypothesisand substitute hypothesishave been supported to some extent.The paper contributes to the literatures about governance environment and accounting standards theories' empirical research in China.