Internal Control Audit,Earnings Management And Enterprise Value

The value of enterprise value is the focus of many investment institutions.With the continuous development of China's capital market,in order to achieve the maximization of enterprise value,the listed companies should actively improve the construction of internal control system and play an important role.In order to improve the internal control of enterprises,the government has issued a number of rules and regulations to promote the construction of enterprise internal control system from 2006.However,the construction of the system is not easy,to spend a lot of manpower,material and financial resources,coupled with the role of the internal control system to enhance the value of the enterprise may in the short term is not obvious,so inevitably there will be enterprises in the internal control standard in the process of building the system just for dealing with regulatory authorities "as a mere formality".In view of this situation,in2012 the Ministry of Finance and Securities Regulatory Commission jointly issued the "notice" on 2012 listed on the classification of partial implementation of enterprise internal control standard system,the notice requirements of listed companies classified in the disclosure of internal control self assessment report of audit of internal control over financial reporting and the report issued by the CPA,the mandatory internal control audit began to enter into the view of the people.Internal control audit,as the control of the internal control of the enterprise,will have an impact on the value of the enterprise.In the summary of the related literatures,this paper uses the principal-agent theory,asymmetric information theory,signal transmission theory and institutional change theory to analyze the relationship between the internal control audit,earnings management and enterprise value and put forward the hypothesis by collecting and processing financial data of Sample Firms,using the multiple linear regression model to empirical test.In this paper,we selected the Shanghai and Shenzhen A-share listedcompanies in 2008-2015 as the research object,and carried on the research according to two levels of A.First of all,the total sample is divided into the implementation of internal control audit of listed companies and non listed companies to implement internal control audit to analyze the effect on the value of the enterprise internal control audit results,after the listed company internal control audit value than the unaudited higher;Secondly,after the audit of internal control of listed companies according to the sample initiative is divided into voluntary and mandatory,to analyze the effect on the value of the enterprise internal control audit mandatory found that mandatory corporate internal control audit value than Voluntary Audit lower;Finally,the role of earnings management results,because the company has a high degree of mandatory audit real earnings management,corporate real earnings management behavior in the condition of outside investors can not effectively identify,real earnings management weakened between mandatory corporate and voluntary corporate value gap.This paper from the theoretical sense,the research of earnings management on the mandatory regulation of internal control audit and enterprise value,to a certain extent,enriches the research of internal control audit and earnings management.From a practical point of view,the paper examines the effect of the implementation of internal control audit policy,and provides empirical support for the further implementation of mandatory internal control audit.