Study On The Relationship Between Corporate Governance And Firm Performance Which Is Adjusted For The Impact Of Earnings Management

In recent years, scholars have devoted considerable attention to the governance structures, focused on the relationship between corporate governance and firm performance and the relationship between corporate governance and earnings management these two areas. As imperfect corporate governance structure is the main reason leading to earnings management, scholars paying attention to the inhibitory effect of corporate governance structure on earnings management. But the study on corporate governance and corporate performance, earnings management is separation, it did not form an interrelated system. Since there exist earnings management, corporate reporting the financial results is untrue, is affected by the earnings management, then the corporate governance report on the financial performance of enterprises to be questioned. This article attempts to remove the part of earnings management adjust of the company's financial report performance, then try to conclude how the corporate governance structure influence firm performance which is adjusted for the impact of earnings management.This paper will from ownership structure,board characteristics and management stockholding to research the relations between corporate governance and the unmanaged performance.(1)Ownership concentration and the unmanaged performance is a positive relationship. This shows that the more concentrated equity, the more positive the largest shareholder to exercise oversight functions effectively bound to work for enterprise performance management, and not for private interests to earnings management, price manipulation, ignore the long-term development.(2) Managerial Ownership and the reported performance is a positive relationship, but the managerial ownership and corporate unmanaged performance is not statistically significant show. Although the negative correlation between them is not significant, but it caused people to rethink the management of shareholdings. Comparisons show that the proportion of managerial ownership, the more likely to manipulate accounting earnings of private interests, fluctuations in stock prices, to achieve the maximum economic benefits.(3) Abort board characteristics, the proportion of independent directors both has significant positive relationship with accounting performance and unmanaged performance. Can be seen that the exercise of independent directors on the supervisory powers of the functions of the board of directors to play an important role to play. Board size and corporate unmanaged performance is positively relationship, but although not significant, which does not match our expectations, the system may be related to our board of directors, some directors did not play its due role. Annual Board meeting both has a significant positive relationship between accounting performance and unmanaged performance. That indicates the Board played a role. CEO duality has a negatively relationship with unmanaged performance. indicating that t CEO duality created favorable conditions for earnings management and for their enterprises to private interests without considering the development, they control the board, so that the Board's oversight function failure.