Study On The Correlation Between Marketization Level,Internal Control Quality And Earnings Management

Beginning in the 1980 s,earnings management has become a research hotspot in the accounting academia and practice circles due to its characteristics of diversified means,concealed operation,purpose benefits,and extensive influence.Regardless of the purpose,earnings management will weaken the authenticity and reliability of the company's financial report,and affect various stakeholders to make informed judgments and decisions.Therefore,in corporate governance,it is necessary to study the factors that inhibit earnings management.In the past 40 years of reform and opening up,the level of marketization has achieved remarkable results.In the course of China's economic transition,the country has adopted a regional imbalanced development strategy of "coastal then inland,first east then midwest",resulting in significant differences in the level of marketization in various regions of China.Under this background,how will the differences in the level of marketization in various regions affect the earnings management behavior of listed companies? With the advancement of various internal control standards and guidelines in China,internal control,as a means of supervision and management in the operation of enterprises,can effectively reduce the agency problems and information asymmetry problems existing in enterprises.Therefore,for a company in a specific market environment,can high-quality internal control effectively inhibit the earnings management behavior of listed company management? As the driving force of the company's development,how will market forces affect the earnings management behavior of listed company management? Is there a regular pattern for this effect? Existing research has not given a clear explanation,which needs to be further explored.This article first sorts out the relevant literature of the predecessors on the level of marketization,the quality of internal control,and earnings management and gives a comprehensive description.Secondly,the concepts and related theories of the three are explained and analyzed to provide theoretical support for the hypothesis and empirical analysis below,and then the hypothesis and multiple regression model of the article are proposed.In the empirical part,based on the selected data,this article separately explores the impact of marketization levels and internal control quality on the company's earnings management in the region where the listed company is located,and further tests the marketization level of the internal control quality in the region where the listed company is located and the company's surplus Partial intermediary relationship between management.The possible innovations in this paper are mainly the innovation of research perspective and the innovation of research conclusions.First,this article incorporates the level of marketization and quality of internal control in the regions where listed companies are located into the same framework,and explores the mechanism of their constraints on company earnings management.Taking the quality of internal control as an intermediary variable,this paper explores the role of internal control quality in the marketization of listed companies and the company's earnings management.Second,the research conclusion of this article is that the level of marketization in the region where a listed company is located can affect the company's accrued earnings management and true earnings management through internal control quality.The existing literature has hardly explored whether different levels of marketization affect the earnings management of listed companies through the quality of the company's internal control.The conclusions of this article are relatively novel.