Financial Shared Services and the Quality of Accounting Information:Governance Mechanism or Agency Problem?
The implementation of financial shared services is critically important for actively promoting the digital transformation of accounting and for establishing a modem national accounting information development system.Research in IT and digitalization indicates that the concentration of information in shared systems can serve as a"value tool"to enhance governance effectiveness,but it may also become a"self-serving tool"for major shareholders to exploit or for management to engage in agency problems.This paper investigates the impact of financial shared services on the quality of accounting infor-mation,drawing on the practical context of corporate groups that have implemented financial shared services.Utilizing a sample of A-share listed compa-nies from 2009 to 2020,the study finds that the implementation of financial shared services significantly enhances accounting information quality.Moreo-ver,the research reveals that the longer the duration of financial shared services,the more pronounced the improvement in accounting information quality.It also finds that the governance effect of financial shared services is primarily observed in firms with less severe agency problems.Additionally,business digitalization serves to strengthen the positive impact of financial shared services on accounting information quality.Further analysis indicates that only large-scale,highly standardized enterprises located in developed regions can effectively leverage financial shared services to enhance accounting informa-tion quality.The findings of this study provide micro-level evidence for the effective governance effect of financial shared services on accounting informa-tion quality,offering valuable insights for promoting the establishment of a world-class financial management system in China.
Financial Shared ServicesAccounting Information QualityDigital TransformationGovernance EffectsAgency Problems
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