Does Blockchain Technology Promote the Quality of Enterprise Accounting Information?

Abstract

Purpose - A crucial technology of the information society, blockchain technology has been introduced to more and more companies because blockchain technology can improve operation efficiency. This study aims to find how to apply blockchain technology to improve the quality of accounting information, so as to help investors better understand the company. Design/Methodology/Approach - This study conducts a fixed-effect regression analysis on the data of Chinese A-share listed companies from 2010 to 2019 to examine whether blockchain technology impacts the quality of accounting information. Findings - The empirical results show that investment in blockchain technology indeed positively affects the quality of enterprise accounting information. Furthermore, we found that the greater the attention of analysts, the higher the degree to which blockchain technology improves the quality of accounting information. Also, when the company has a stronger innovation ability, there is a higher degree to which blockchain technology improves the quality of accounting information. Research Implications - This study enriches the relevant research of the impact of blockchain technology on enterprise accounting information quality. It suggests that companies devoted to blockchain technology can promote trust between all parties and improve information transparency. Meanwhile, companies should increase R&D investment so that blockchain can effectively improve the quality of accounting information.