Research On The Influence Of Internal Control Quality Of Listed Manufacturing Companies On Earnings Management

In a listed company,the management is entrusted by the funder to make business decisions for the company 's various affairs and assume corresponding responsibilities.The management is likely to use its information advantages and decision-making power for reasons such as its own interests.Ways to control surpluses,beautify financial reports,confuse investors and damage their long-term interests.In order to improve the quality of financial information in the securities market and increase investors' confidence in the securities market,internal control appears in this form.Because manufacturing is the social and economic bridge of our country,manufacturing has its unique advantages in stimulating social and economic growth,advancing social transformation,and solving population pressures.Therefore,this article chooses to conduct research through listed companies in the manufacturing industry to understand The impact of its internal control quality on earnings management.This thesis first sorts out the literature,concepts and theories,and then selects all relevant data of manufacturing companies listed in the A-shares of Shanghai and Shenzhen from 2014 to 2018,and uses the modified Jones model to measure the degree of earnings management and the listing of Dibo The enterprise internal control index measures the quality of internal control,and then conducts descriptive statistics,correlation tests,multiple regression analysis through STATA 14,and further studies of listed manufacturing companies under different property rights.Then take the E company in the manufacturing listed company as an example to conduct a case analysis,identify the earnings management behavior of E company from various angles,and then analyze the methods used for earnings management.The impact of the company's internal control quality on earnings management,and several suggestions for improving internal control quality to reduce earnings management from these five perspectives.From the macro to the micro,the particularity of the case is analyzed on the basis of considering the universality of the industry.Finally,the following conclusions are drawn:Companies with higher internal control quality in listed companies in the manufacturing industry have stronger reduction effects on earnings management resulting from accounting choices and earnings management caused by real activities.Secondly,compared with non-state-owned enterprises,the higher the quality of internal control in state-owned enterprises,the more significant the inhibitory effect on earnings management.In the end,whether it is company E or other companies,manufacturing or other industries,it is necessary to actively cooperate with internal control standards and supporting guidelines to improve the internal control quality of the enterprise,pay attention to the construction of the internal control system,and improve the internal control execution ability to reduce the company 's internal control.Earnings management behaviors enable companies to develop in a healthy and long-term manner.