Research On The Relationship Of Earnings Quality And Internal Control Information Disclouse

In order to ease the capital markets crisis of confidence caused by a series of bankruptcy cases, such as Enron, the World Communication. In2002, the United States Congress enacted the Sarbanes-Oxley Act, which made America’s internal control information from voluntary disclosure become mandatory disclosure. By the influence of the United States and domestic business failures, our country has also accelerated the pace to construct the internal control information disclosure system. With the release of "the enterprise internal control basic norms" and its supporting guidelines, our internal control information disclosure system prototype has been basically formed. Due to the constant improvement of the internal control information disclosure system, the relevant empirical studies have also gradually become more. By tracking batch after batch of "distressed" companies, especially after the outbreak of the financial crisis spread to the world in2008, we can easily find that a sound internal control system does not bring the quality of internal control information disclosure. Behavior responsibility and duty of disclosure is not synchronized, the reason is that management would make behaviors for the protection of their own interests.In our market environment of "nothing but good news", management will disclose internal control information according to the effects of enterprise behavior responsibility, which could be embodied best by the quality of accounting information. As one of the most important accounting information, surplus quality is one important standard to measure the degree of management effort, and also is the best explanation of the enterprise behavior responsibility. There are currently lots of studies about internal control information disclosure, but whether a listed company discloses it selectively based on the level of earnings quality, few scholars have mentioned it. So, making the earnings quality as an important research perspective to reveal management behavior within the internal control information disclosure, this paper has certain theoretical meaning and realistic meaning.Firstly, the paper analyzes relevant content about the earnings quality and internal control information theoretically. It creatively combines evaluation method form authority with alternative variable method to assess the level of internal control information disclosure in our country. Secondly, it gives the relationship between earnings quality and internal control information disclosure, which provides theoretical support for the subsequent study. Finally, through the multiple linear regression analysis of the explained variables (internal control information disclosure index) and the explanatory variables (earnings quality), we find out the evidence of management behavior within the information disclosure in listed companies in China.The investigation about the management behavior of internal control disclosure, helps rational investors evaluate the internal control information qualitatively and quantitatively, so as to help them make the most favorable investment decision, and realize our country’s capital market stability.