The Research On Internalcontroldisclosure Of Information And Earning Management Relations

In recent years, a series of fraudulent cases caused by the absence of internal control,making the internal control and its information disclosure become a hot topic in research circles domestic and intermational.Enron,WorldCom and other large International accounting scandals of listed companies broke out in USA after 2001,and the recent incidents such as GOME chairman of the Board being alleged economic crimes, low-quality milk powder of Sanlu group,etc.,were all related to weak internal control and lacking internal control information disclosure of listed companies.Internal control information disclosure has aroured the attention of China's regulatory authorities.Since 2000,China's regulatory authorities have issued a number of Provisions,to make such a request to internal control information disclosure of listed companies. issued by Shanghai Stock Exchange (SSE) in 2006,demands all the listed companies to disclosure internal control self-assessment report worked out by Board (or worked out by the Audit Committee and considered by Board) and the audit opinion of accounting firms.The release of the guidelines indicates that the internal control disclosure of information in China is gradually transforming into the mandatory disclosure.However,the current domestic research of internal control information disclosure mainly focuse on the status of internal control information disclosure and the factors that impact internal control information disclosure,the economic results of information disclosure of internal conirol,especially the research about the relationship between internal control information disclosure and accounting information quality is still relatively scarce.The effectiveness of new information disclosure system of internal control has not been discussed yet.In this paper, we discuss the problems above by considering the relationship between internal control weaknesses and earning quality this Paper Provides evidence for the relationship between internal weaknesses and earning quality,and extends the research on internal control information disclosure.Based on Chinese listed companies in Shanghai city by 2009 a-shares (all data to eliminate) annual data, disclosure in the internal control information disclosure and investigation and internal control information disclosure system background, influence factors, disclosure level measurement based on literature, discusses the internal management in accordance with the corporate governance structure and external governance mechanism, the corresponding internal control disclosure level indicator system, and based on this analysis, the company's internal control information disclosure in the annals of the company, the disclosure of quality score, quantitative and qualitative analysis of the problem is calculated by A flop model of earnings management level of measure of control accruals, then will introduce two variables, add the equation model with four control variables, data, and the model descriptive statistics and regression analysis. In this paper on the basis of empirical study and normative research method of combining the disclosure of the internal control is the quality of earnings management behavior problems affect deep research, has certain theoretical and realistic significance.This paper combining the theory researches and empirical studies,is divided into five Parts.The first part is an introduction.It introduces the research background and significance of this paper,and then proposes the idea of this study and research methods.The second Part is about literature review,in this part the paper discusses previous research relating to internal control information disclosure,both domestic and international.The third Part mainly focuses on theoretical analysis and hypothesis.In this part the paper expounds the conception of intenal control and internal control information disclosure.Then analyzes the relationship between internal control,internal control information disclosure and the earning quality respectively from the perspective of Principal-agent theory,signaling theory and capitail market efficiency theory.At last,put forward the hypothesis.The fourth Part is empirical research,in this part,the selected samples and the definite variables are put in built model for statistical description and regression analysis.The empirical results obtaines also carried out sensitivity testsIn the fifth Part,combining the Preceding theoretical analysis and empirical analysis,this paper proposes some recommendations on information disclosure of internal control in China.