The Relationship Research Of Listing Corporation Earnings Management And Internal Control Quality

Listed companies at the present stage of earnings management behavior isrelatively common, and exist excessive surplus management and even surplus controlproblem, the serious influence of the accounting information user’s interests. Financialreport information was the influence of earnings management, the reliability and thecorrelation has dropped significantly, to investors and other information usersdecision-making misleading. And the listed company’s internal control activities in themanagement of the company is an indispensable component, but also to ensure that thequality of financial reporting, guard against operational risks, to realize an importantguarantee of the target of the management, therefore, the internal control level is boundto management authorities of earnings management behavior produce certain effect.Based on this point, the article to the listed company surplus management and internalcontrol between the shallow theory.Internal control as a guarantee the quality of financial report is an importantinstitutional arrangement, has received the regulators and investors high attention. Soin China under the background of the current system, internal control can effectivelyrestrict surplus management, based on the empirical research method, the internalcontrol quality and the correlation of earnings management study.Based on the cross section of the Jones model as the foundation, in keep its mainbody under the condition of constant, by adding new variable company size, equityconcentration, salary management, such as sample to measure the profit of thecompany management level. According to the internal control of the three objectivesthat (1) the reliability of financial report,(2)the efficiency and effect of management,(3)to abide by laws and regulations to quantify the quality of internal control. Thispaper collects2010-2011Shanghai listed companies relevant information and data andfinishing, and so as the research sample,the sectional modified Jones model calculationof controllability accrued profit to measure surplus management, improved Jonesmodel based on regression analysis,and reveals the internal governance structure on whether or not earnings management has direct relation. The internal control level arebeneficial to reduce the occurrence of earnings management behavior problems such asthe theoretical analysis and empirical test. The results of the study show that: first, thelisted company in business exist in the process of earnings management behavior,Second, the listed company will make adjustment increase income accrued accountingtreatment; Third, the listed company’s internal control helps to reduce the occurrenceof earnings management behaviour.