Research On The Relationship Of Supervisors Board Capital,Nature Of Property Rights And Earning Management Of Listed Companies

Under the corporate governance type of Board of Directors and theSupervisory Board coexistence model, independent directors and board ofsupervisors both play the financial oversight functions. Research on the financialsupervision effect of the Supervisory Board is one of the hotspots in theorists andthe practitioners.Past study are all focus on the total effect of Supervisory Board,and very few from the aspect of Supervisory Board members’"human factor".However the "human" factors play a very important effect on the Board ofSupervisors. In this paper, this factor is materialized by “the human capital of theBoard of Supervisors”。The human capital of the Board of Supervisors includes the knowledge,skills, level and experience of the members of the board of supervisors,these factorscan affect the quality of earnings management. From the perspective of resourceinput-output, the more of input resources, the more output. human capital ofBoard of Supervisors can be seen as a resource investment, the more abundantknowledge, the more skilled, the more fully experience the members of the board ofsupervisors have, the more adequate the resources of the Board of Supervisors,the higher the operating efficiency of the Supervisory Board, the better the Board ofSupervisors supervise the earnings managementAt the same time, given the existence of state-owned enterprises in China,there are significant differences in the efficiency of corporate governance betweenthe the state-owned enterprises and non state-owned enterprises. Research the effects of the financial supervision of the board of supervisors of state-owned enterprisesand non state-owned enterprises differences have great significance.This paper that based on RBV choices CSI300constituent stocks as thestudy sample, selects the relevant data of the2007-2010board of supervisors,\constructs the variable of human capital indicators including the average age of theSupervisory Board, level of education, office background heterogeneity, empiricallyanalysis the relationship between the Board of Supervisors of human capital and theextent of earnings management. Paper further studies the difference of governanceefficiency of the Supervisory Committee between state-owned enterprises andprivate sector,aiming to provide recommendations for strengthening the supervisorysystem.The study found that average age of the Supervisory Board and EarningsManagement has significant negative correlation, namely the older the Supervisorsare, the better the effect of financial supervision is.; the education level of the boardof supervisors can not significantly affect the Board of Supervisors; Board ofSupervisors’ office background heterogeneity has a significant negative affection onearnings management; the higher the level of human capital of the SupervisoryCommittee, the Supervisory Board governance the better; property rights nature doesplay a regulatory role on the relationship between the Board of Supervisors ofhuman capital and earnings management.