CEO Network Embedding, Earnings Quality And Enterprise Value

Earnings information is an important product of accounting information system, providing guidance for decision-making information users. Following some financial fraud and auditing scandals, earnings quality is gradually taken seriously. High quality earnings able to increase corporate value becomes a problem to be studied. In the current capital market conditions, the enterprise value of more concern, the risks associated with the stock market can occur at any time, how to maximize value creation of enterprise become an urgent problem to be solved, facing this situation, business owners and managers must make the greatest efforts for the continued creation and increase corporate value. CEO as the company’s core management staff, to maintain and ensure business continuity management has a very important significance. In this paper, the CEO for the embedded network perspective, thinking in terms of creating and enhancing the enterprise value of the embedded network constructed CEO, earnings quality and enterprise value of the three related models, not only to improve the quality of earnings to promote enhance corporate value, but also Research on the CEO network embedded value earnings quality to create the ability to produce effects.This paper selects 2013 all A-share listed companies as samples, proceeding empirical analysis for relationship between the three. Based on literature review and theoretical explanation, corresponding research hypotheses are proposed from the CEO internal and external network embedded, using structure equation model proposed hypothesis testing. Findings show higher earnings quality has a significant positive effect on enterprise value. CEO internal network embedding has positive effect on the enterprise value, and external network embedding has a negative impact on enterprise value. Meanwhile, CEO internal network embedding is not a positive regulatory role in influencing the quality of earnings on the enterprise value, while the external network embedding play negative regulating effect in earnings quality influence on enterprise value.