Internal Control,Corporate Social Responsibility And Earnings Quality

Earnings can reflect the enterprise development prospect and enterprise value,and is an important basis for stakeholders to make investment decisions.Earnings quality is an important dimension to evaluate the quality of accounting information of enterprises,which can reflect the performance of enterprises’ obligations to all stakeholders.Real and objective earnings information can reflect the current and predict the future operation of an enterprise,and play an irreplaceable role in alleviating the trust problems caused by information asymmetry among internal and external people,improving information transparency and protecting the rights and interests of stakeholders.In recent years,with the rapid development of economy and securities market,the public is more and more keen on investment,accounting information as an investment basis is increasingly important.Therefore,how to improve the quality of corporate earnings information has become one of the hot issues concerned by the academic and practical circles.As an important way and means for enterprises to prevent risks and improve the quality of management,sound and strong execution of internal control can not only help enterprises better resist risks,promote operation compliance,but also restrict and supervise the financial fraud of enterprises,improve the quality of enterprise accounting information.In the process of operation and management,enterprises that actively fulfill social responsibilities can better take into account the interest demands of other stakeholders,pay more attention to the longterm development of enterprises,and reduce earnings management behavior.Therefore,the relationship between internal control,corporate social responsibility and earnings quality has been concerned by the theoretical and practical circles.Based on the summary of relevant research,this paper discusses the logical relationship between internal control,corporate social responsibility and earnings quality,and puts forward the corresponding hypothesis.This paper takes A-share listed companies in Shanghai and Shenzhen as samples for empirical test,and further analyzes the property right nature and enterprise scale of Chinese listed companies.Through the research,this paper draws the following conclusions: enterprises with better internal control quality have higher earnings quality;Better internal control quality is conducive to the improvement of corporate social responsibility performance level;Corporate social responsibility can improve the quality of corporate earnings;Corporate social responsibility plays part of the mediation effect of internal control on earnings quality.In addition,further research shows that the positive relationship between internal control,corporate social responsibility and earnings quality is more significant in non-state-owned enterprises and small-scale enterprises.According to the results of the empirical study,this paper puts forward some suggestions to improve the quality of corporate earnings from two aspects: strengthening corporate internal control and strengthening corporate social responsibility.