Study Of Internal Corporate Governance Mechanisms And Earnings Management Relations

The misuse of the earning management is the root of accounting information distortion. The earnings management in Chinese listed companies is due to the flaw of corporate governance. The corporate governance comprises the interior mechanisms of corporate governance and the exterior mechanisms of corporate governance. The interior mechanisms of corporate governance is core of the corporate governance. So the paper will analyze theoretically on the association between the interior mechanisms of corporate governance and the earning management and carry on an empirical study by using the relevant data of listed companies of our country.The paper uses the Jones model to calculate the extentof earning management .Then,the paper analyzes the ability of the capital structure and the ownership structure as mechanisms of the corporate governance and to restrict the earning management. The results of the empirical research prove that the different trails of the interior mechanisms of corporate governance could bring different influences to earning management . The ownership of a share concentrates an influence to earnings imformation quality is shows obversly,and the quality that approproiate ownership of a share concentrates a earnings for just benefitting to exaltation business enterprise information.The scale of the board of directors with earnings information qualiy is the positive related relation.Independent board director number comparison with earnings information quality is direct proportion relationTherefore, the key point solve the problem of earning management in Chinese capital market is to perfect theinterior mechanisms of corporate governance...