Research On The Impact Of Internal Control Information Disclosure On Earnings Management Based On Real Activities Manipulation

In recent years, with the improvement of accounting standards and increasingly stringent external regulatory environment, financial fraud is severely restricted, the earnings management behavior is increasing. Earnings management behavior is contrary to the reliability of financial information, it damages the interests of stakeholders, also affects the long-term development of enterprises. Since 2011, the Internal control information is improved to the extent of mandatory disclosures. Stakeholders can learn through the internal control information for internal control of listed companies to ensure that the degree of reliability of financial information. Domestic and abroad focus on accruals earnings management, concluding that the negative relationship between the two processes. Based on previous research, we will focus on the few involved in real earnings management activities. From the perspective of information, this article using total-points-total analysis mode of thinking explores whether the internal control information disclosure quality have an impact on real earnings management and the direction of impact.Firstly, this article describes the internal control information disclosure quality and real earnings management and points out that both in theory links. Secondly, the analysis is divided into two routes. One by the internal control information disclosure quality as the main line. On the basis of the internal control information disclosure quality’s evaluation method combing, in accordance with the relevant principles, this article devises an evaluation system with five level indicators and sixteen secondary indicators. After evaluating the sample companies’ information disclosure quality of internal control, we notes that the current quality of information disclosure of internal control in the lower level. Another one with real earnings management as the main line, analyzes the real activities earnings management motivation from two aspects of absoluteness and relativity, introduces the real earnings management activities common means such as sales control, production control, discretionary expenses control. With reference to the Roychowdhury’s study, the measurement formula of real earnings management is given. Through in-depth analysis of the means of real earnings management, we points out the real economic consequences of earnings management activities. Lastly, this article combines the two in-depth analyses on the basis of two lines. First of all, we analyze the impact of internal environment, risk assessment, control activities, information communication and overall supervision on earnings management based on real activities manipulation. Next, we selects 2013 Shenzhen A-share listed companies board 442 samples, verifying the relationship between the two from an empirical perspectiveThe results found that, in the balanced disclosure form, the higher the quality of the internal environment, risk assessment, control activities, information disclosure, the extent of earnings management in real activity is lower; in the internal control defects disclosure form, comprehensive disclosure quality is high, the extent of earnings management in real activity is lower. This paper gives the suggestions, the relevant departments should establish norms of the internal control information disclosure, unifies the form of internal control information disclosure, improves comparability. Enterprises should perfect the internal control system and improve the quality of information disclosure of internal control, to make the content presented separately, disclose more content with enterprise features and have quantitative information. Recommend that more attention should be paid on non-financial information by information users, especially the internal control information.The innovation is that, according to the disclosure form, internal control self-assessment report is divided into defect disclosure and balance disclosure, carrying out the empirical studies in both the disclosure form. This paper played a positive role in improving the stakeholders to make a reasonable decision and optimizing the capital market allocation of resources.