Changes In Executive Management, Quality Of Internal Control And Comparability Of Accounting Information

With the advancement of IPO and the influx of many companies into the capital market,the comparability of accounting information has attracted more attention.Comparable accounting information is conducive to investors to make clear decisions and optimize resource allocation.The unification of accounting standards improves the comparability,but in the concrete operation,the company's implementation of standards and the choice of policies are subject to the actual executors.As the implementers,the comparability may be affected if the executives change.As a corporate governance mechanism,internal control can realize the daily supervision of executives' behavior,and effective internal control may play its role in the change events.Therefore,this paper studies the impact on comparability from the perspective of senior management change and internal control quality.Through principal-agent,information asymmetry and high-ladder team theory,this paper studies the influence of senior management change on the comparability of accounting information,and selects the data of A-share listed companies in Shanghai and Shenzhen Stock Exchange from 2013 to 2019 as the empirical research samples.The results show that senior management change significantly reduces the comparability of accounting information.In this process,high quality internal control plays a positive regulating role by supervising and restraining the act of senior executives.Taking Sinopec Oilfield Service Corporationas a case,this paper found that the succeeding executives had opportunistic motives and affected comparability through profit manipulation.Through the case of another company in the industry with good internal control quality analysis to prove the regulatory effect of internal control quality.This paper enriches the research on the influencing factors of accounting information comparability at the micro level and verifies the regulating effect of the quality of internal control,which is helpful for enterprises to maintain higher accounting information comparability in senior management change events and provides theoretical support for vigorously promoting the construction of internal control.