Research On The Relationship Among Media Supervision,Internal Control And Earnings Management

Media as a kind of unique external supervision mechanism plays an increasingly important role in the reform and perfection of market economy in our country.Media supervision scope is wide and high-speed.As a in transition economy,some enterprises corporate's governance structure of China's capital markets are not perfect,earnings management is a very typical way of financial control,Wide-range,large amount and long-duration earnings management behavior is associated with fraud.Unreasonable governance structure is a deep reason why the enterprise internal control is not perfect,lead to enterprise misstatement of financial statements fraud,in violation of laws and regulations,and lack of efficiency of operations.This paper use media supervision and internal control level represent the enterprise external and internal governance,explore the two kinds of governance mechanism can effectively restrain the earnings management behavior of enterprise,and two kinds of governance mechanism in the inhibition of surplus management presence of alternative and complementary relationship between each other.Article selected the a-share listed companies in China from 2013 to 2015,three years of the consolidated financial statements data,calculated each sample enterprise accrued earnings management every year,and real earnings management data,media report number is obtained by manual searching as substitution variables of media supervision,and at the same time every year by listed companies to disclose internal control verification report type is about internal control variables,totally received 2374 samples,returning to conclude that only when the enterprise internal control design scientific and reasonable,the media can give full play to the governance function of earnings management behavior of enterprise under the media exposure can effectively inhibit.Whereas the internal control has deficiency,the company failure to disclose internal control verification report or internal control verification reports non-standard unqualified,media supervision has no significant for two types of earnings management behavior.In this paper,a total of six chapters,the first two chapters is the thesis research background,summarize the domestic foreign scholars for media supervision,internal control and earnings management.The third chapter raises four assumptions in this paper.Hypothesis One:the higher the media will make the enterprise under pressure from the media use less accrued earnings management;Hypothesis Two:the higher media supervision also can make enterprises to adopt less real earnings management;Hypothesis Three:when enterprises with good internal control,media supervision can significantly inhibit accrued and real earnings management;Hypothesis Four;when the enterprise internal control have defects,there is no significant inhibition betweenmedia supervision and two types of earnings management behavior.Chapter 5 of the articles is the empirical testing process,in order to verify the four hypothesesproposed above.Chapter 6 summarizes before section of the research content,and put forward related Suggestions for this article conclusion.