If the truth and credibility of Internet Financial Reporting can’t be assured, information users won’t make use of Internet Financial Reporting, which will cause that the firms haven’t incentives to voluntary adopting Internet Finan-cial Reporting and the prior two aspects of research lose meaning.
Currently the financial profession is facing a credibility crisis,so it is important for both the society and the financial profession as a whole to solve the problems of how to rebuild the accounting credibility,to speed up the construction of credibility system and to build up a good environment for accounting credibility.
Accounting credibility is different from accounting honesty. According to some relevant tenets of such theories as the new institutional economics,agency and trust,the information economics,the essence of accounting credibility is an institutional structure established to regulate the behavior of accountants and prompt them to engage in honest professional practice.
A comparison between two kinds of BMS based on different credibility
The paper develops a design of optimal Bonus-Malus System (BMS) based on exact equitable credibility, in which the relative error function is taken as loss function.
The theoretical result is consistent with available measurement, which indicates the credibility of this theory and the potential energy surface.
To evaluate the effectiveness and credibility of the new method, comparison study of this map with the existing national maps has been performed, which implies that it is considerably valuable to apply this method to practical use.
In order to minimize the total transportation cost, chance-constrained programming model is designed for the problem based on the credibility measure and then tabu search algorithm based on the fuzzy simulation is designed to solve the model.