| The pharmaceutical industry is a high-tech industry integrating high added value and social benefits,and China has always taken the medical industry as a key pillar industry to vigorously support.While the market size of the pharmaceutical industry is expanding,some problems in the surplus management of some companies are also exposed to the public.Previous scholars’ research and analysis have shown that corporate governance structure has a significant impact on earnings management.Therefore,this paper aims to analyze the impact of relevant indicators of governance structure on earnings management in the pharmaceutical industry,and the research results can provide a reference for how to restrict the earnings management behavior of various companies in the pharmaceutical industry in terms of governance structure,so as to improve the corporate governance structure system more scientifically and reduce the earnings management behavior.Based on stakeholder theory,information asymmetry theory and principal-agent theory,this paper puts forward research hypotheses based on the relationship between corporate governance structure and earnings management,and applies empirical research methods to systematically analyze the impact of corporate governance structure on earnings management in China’s pharmaceutical industry.Taking the data of listed companies in China’s pharmaceutical industry from 2017 to 2021 as the research sample,taking the controllable accrued profit as the dependent variable to measure the degree of earnings management,a total of 11 relevant indicators were selected as independent variables from the aspects of equity structure,board characteristics,board of supervisors characteristics and manager characteristics,and asset-liability ratio and company size were used as control variables,and empirical analysis was carried out on the impact of corporate governance structure on earnings management.Empirical studies have found that the shareholding ratio of the largest shareholder,the number of annual meetings of the board of directors,whether the chairman and the general manager are combined are positively correlated with earnings management,the proportion of outstanding shares,the proportion of independent directors,the number of annual meetings of the board of supervisors,and the total remuneration of the top three executives are negatively correlated with earnings management,while the shareholding ratio of the second to fifth largest shareholders,the size of the board of directors,the number of four committees established,and the size of the board of supervisors are not significantly correlated with earnings management.Based on the conclusions of empirical analysis,suggestions are put forward,such as optimizing the company’s equity structure,improving the construction of the independent director system,improving the construction of the board of supervisors system,improving the incentive and constraint mechanism of managers,and clarifying their responsibilities,which are conducive to improving the earnings management of companies in China’s pharmaceutical industry. |
