The Correlation Study In Listed Commercial Banks Between The Quality Of Internal Control And Earnings Management Behavior

Since the20th century, the financial fraud of listed companies, accounting information distortion has occurred more, Olympus, green earth time, Wan Fusheng events are constantly stimulate our nerves, regulators are constantly updated to strengthen internal control regulations in all walks of life of the company’s internal control mechanism, scholars research on internal control emerge in endlessly. Some tragedy happened because of violation of the relevant laws and regulations, others less so, but executives for internal interests caused by the excessive earnings management behavior. Earnings management behavior has been the hot topic of financial management theory and practice, some scholars think that the surplus management, legal compliance, in the range of countries allow it; While some scholars think that excessive earnings management behavior is bound to lead to a drop in the quality of financial information, misleading financial statements, affect investors rational decisions, the passage of time will be led astray enterprise, do not know to return. So enterprises should set up a way to standardize enterprise behavior, guide staff compliance operation and supervision of trading system, namely the internal control system, effectively prevent the enterprise unreasonable behavior. Last century, scholars both at home and abroad through theoretical and empirical research to verify the relationship between internal control quality and earnings management problem, some scholars such as Doyle (2007) to the empirical analysis by collecting data, introduce the lower the quality of internal control will lead to the conclusion of the accounting information quality, the worse.But a lot of data analysis and empirical studies are confined to non-banks, may be due to the listed commercial Banks under the securities and futures commission and the relevant regulators can has the high quality of internal control, and thereby the banking internal control quality has no research. But we see the status of the commercial Banks play a significant role in economic development, is the link of economic development. China financial stability report2013release marks the deposit insurance system in our country and the upcoming "bank bankruptcy law", this is a huge challenge to our country banking and greater hope. At the same time, commercial Banks because of its particularity, have beyond average risk of industry and commerce enterprise, are greatly influenced by the economic environment, belong to high risk industry. And outside investors or the public due to its own limitations and information asymmetry on commercial Banks’ concerns are "mixed", they cannot be related to understand further bank; External audit institutions only under the condition of the entrusted to review of commercial Banks, and the principal-agent relationship is bound to the independence of the audit on a layer of yarn. When people are "look" of commercial Banks, because British barings bank internal control defects lead to stir the collapse of the world, also broke the story of the Banks to fail, cause the from all walks of life thinking of bank internal control. And bank earnings management behavior are also beginning to see, need strong internal control system, to prevent the tragedy from happening again. But the commercial Banks internal control can inhibit the earnings management behavior is a problem urgently to be verified, it is through collecting the related data for empirical analysis, this paper to validate this hypothesis.This article is divided into five parts, the first part of the selected topic significance and related research literature to state; The second part separately from the surplus of commercial bank management, internal control and the correlation between the three angles analyzes the theoretical basis; The third part of the research hypothesis and design, puts forward the assumption and the data and model selection; The fourth part of the empirical analysis; The last part for conclusion advice is given.Based on the measured scholars from all walks of life commercial Banks when the degree of earnings management reference model, aimed at the specialties of the earnings management of commercial bank, chose the Liu Jianqiao extended Jones model based on appropriate modification of the changes in the accounts receivable amount to accrued interest to measure the degree of earnings management. Internal control quality based on the theory of signal transmission based on ICQ. This paper collected2007to2013, the relevant data of16listed commercial Banks in China to arrange, by adding the net interest rate of the total assets, asset-liability ratio, such as data regression analysis, which reveals the listed commercial Banks internal control quality and earnings management behavior is relationship. Research results show that: first, the quality of listed commercial Banks internal control will affect the earnings management level; Second, the listed commercial Banks to the discretion of the degree of earnings management and corporate governance structure there is a close relationship.