Shanghai University, School of Management, Shanghai, China
Focusing on accounting information quality optimization of the listed company, this paper proposes a blockchain-based accounting process to optimize accounting information quality. It will effectively reduce the accounting fraud behavior and seriously affected the process of value discovery, which will enhance securities market effectiveness. The blockchain-based accounting process involves four parts: (a) confirmation of accounting information; (b) measurement of accounting information; (c) recording of accounting information; (d) reporting of accounting information. The blockchain-based accounting process makes it possible to automate all the transaction by smart contracts. The cryptographic algorithms guarantee the security of the transaction data. The new accounting method attempts to record the accounting information of the listed company by distributed ledger technology. Consensus mechanism verifies the validity of accounting process. Finally, this paper uses EVA to evaluate the performance of the listed company after adopting blockchain-based accounting process. Hence, the blockchain-based accounting process can avoid accounting fraud, which will protect investors from financial fraud and ensure the effectiveness of the security markets.
blockchain-based accounting process, smart contracts, the listed company, accounting information quality
Tiantian Yu. Accounting Information Quality Optimization of the Listed Company Based on Blockchain. Academic Journal of Business & Management (2019) Vol. 1, Issue 3: 49-59. https://doi.org/10.25236/AJBM.2019.010307.
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