The Study On The Influence Of Internal Control On Earnings Management In Chinese Listed Commercial Banks

Following the listing of the Agricultural Bank of China and China Everbright Bank in 2010,now China has 16 listed commercial banks.With the increasing number of listed commercial banks,the problems of earnings management in commercial banks are gradually being revealed.Because earnings management violates the objective principle of information disclosure and conceals the real operation of the enterprise,it not only affects the healthy development of the securities market,but also affects the stability of the commercial banks.And compared with the general business,commercial banks are more affected by the economic environment and have a higher risk.If there is a problem,it will be fatal to the entire national economy with high risk attribute of commercial banks and the status in the national economy.Good internal control can effectively restrain earnings management behavior and avoid earnings management into profit manipulation.But a lot of empirical research and data analysis shows that because of the limitations of Chinese listed commercial banks' samples and the supervision of relevant regulatory,the research ability of internal control quality of listed commercial bank is not high.So the research on the relationship between internal control and earnings management is mostly confined to the non-banking institutions,while the research on the commercial banks in this area is very few.However,with the increasing number of listed commercial banks in China,the research in this area will be gradually increased.Under this background,first this article reviews the domestic and foreign research literature on internal control,earnings management and the relationship of internal control and earnings management.Second,in view of them I carried out the corresponding theoretical analysis.Then,by taking the listed commercial banks as the research object,I put forward the research hypothesis,define the relevant variables,and select their data of 2009-2014 to design and build the model.Use stata12.0 to analyze the correlation between independent variables and use the methods of descriptive statistical analysis and multiple regression analysis to analyze the correlation between internal control and earnings management.Draw the conclusion of this article: Listed commercial banks for the high quality of the internal control can effectively inhibit the activities of earnings management and compared with the non-state-owned listed commercial banks,the negative relationship of internal control and earnings management of state-owned listed commercial banks is more significant.Third,other models are used to replace the original explanatory variables,and the results are consistent with the results of this study.Finally,according to the research results,I proposed to perfect the internal control system,establish effective incentive mechanism,control the number of board and expand the supervisors for regulatory authorities and the Listed Commercial Bank.The limitations of this study are briefly described,and the prospects for future research are also described.