Research On The Impact Of Internal Control Quality On Earnings Management From The Perspective Of Property Right Nature

With the frequent occurrence of various financial fraud incidents,the quality of financial information and the authenticity of financial data are more and more concerned and questioned by the public.The quality of financial accounting information of listed companies provides an important guarantee for the healthy and long-term development of the company itself.At the same time,the true and reliable financial accounting information also provides convenience for external investors to make correct decisions.Frequent cases of financial fraud and the research and analysis of many scholars show that more and more enterprises use earnings management to control their book earnings,and in order to show good earnings situation,they publish untrue financial accounting information to external information users.When the normal business activities of enterprises can not guarantee the realization of high-quality earnings,for the purpose of whitewashing statements and beautifying financial information,enterprises will carry out earnings management.One of the important objectives of internal control is to ensure that enterprises provide reliable accounting data and financial status reports for relevant financial information needs.Because internal control runs through the whole process of production,sales,management and operation of enterprises,the effective implementation of internal control can effectively reduce the earnings management behavior of enterprise managers,make enterprises reduce the possibility of operating risks,and protect the long-term and orderly operation of enterprises.In addition,based on the coexistence of two property rights of state-owned enterprises and non-state-owned enterprises,the effect of internal control of enterprises in two different property rights of enterprises is also different.There are different degrees of restrictions on the management’s behavior of manipulating earnings,whitewashing statements,and so on,thus affecting the degree of earnings management.Therefore,based on the study of the impact of internal control quality on real earnings management and accrued earnings management,this paper conducts a further grouping test on the total sample,and compares the impact of internal control quality on earnings management in state-owned enterprises with that in non-state-owned enterprises.This paper chooses the data of A-share listed companies from 2013 to 2017 as samples to study.Firstly,the related concepts and theoretical basis of property rights,internal control quality and earnings management are explained,and the relevant literature at home and abroad is reviewed.Secondly,the relationship between the quality of internal control and the real and accrued earnings management,as well as the degree of the relationship between the two under different property rights,is analyzed theoretically and the corresponding hypothesis is put forward.Thirdly,we use SPSS data analysis software to make an empirical analysis of the sorted data samples.Empirical tests on the nature of property rights,the relationship between internal control and earnings management show that the sub-indicators of internal control quality and real earnings management are negatively correlated with the overall indicators,and the quality of internal control is negatively correlated with the accrued earnings management using accruals.The research on the nature of property rights shows that the negative correlation between internal control and earnings management is still valid,and whether it is true earnings management or accrued earnings management,the impact of internal control quality on earnings management in non-state-owned enterprises is more significant than in state-owned enterprises.Finally,based on the analysis of empirical research,this paper puts forward relevant suggestions from four aspects:improving national internal control laws and regulations,strengthening the importance of internal control,improving corporate governance structure,and improving the quality of internal audit,which can provide some reference for future academic research and corporate governance.