Internal Control,real Earnings Management And Enterprise Performance

The improvement of accounting standards and the improvement of the internal control level in enterprise makes the flexibility of accounting be a great extent weakened,and reduces the company's management accounting policy choice space greatly.What's more,the using of traditional accrual earnings management to manipulate the phenomenon of earnings management is restricted.The external auditors and the government departments improve the enterprise accrual earnings management review,which has led to a further increase the risk of using accounting way to manipulate earnings and the cost of this way is further increasing..Basing on the increase in operating margin management restrictions and related operational risks,so more and more corporate managers are more likely to adopt a variety of real earnings management tools,such as sales control,cost control,production control,etc.,The company make a certain degree of whitewash in the financial statements,in order to achieve some kind of earnings management objectives.Based on the above analysis,this paper puts forward the following questions: First,whether the internal control can inhibit the real earnings management;Second,whether there is a relationship between the internal control,the real earnings management and enterprise performance.This paper uses the panel data of A-share listed companies in Shanghai and Shenzhen from 2013 to 2015,and introduces the moderating variable of real earnings management to discuss its impact on internal control and enterprise performance.Through empirical analysis,the paper gets following main conclusions;at first,there is a significant positive correlation between the internal control level and the enterprise performance.That means enhancing the level of internal control can be better to improve the enterprise performance.Second,the empirical data show that there is no significant correlation between real earnings management and enterprise performance.This is because the positive and negative effects on enterprise performance which is impacted by the real earnings management of different motivations will be offset.At last by using the test method,the paper proves that there is a regulatory effect in the relationship between the internal control,the real earnings management and the enterprise performance.From the results,the real earnings management as a moderate variable,led a significant reduction in the impact of internal control on the impact of enterprise performance intensity.That means,the real earnings management is a negative moderating variable between the internal control and enterprise performance.Earnings management of listed companies has always been a hot topic in accounting research.Many Chinese and foreign researchers have considered the problem of earnings management.However,most of the existing earnings management articles focus on the study of accrual earnings management,and articles about real earnings management are more lacking.Through the research of this paper,we hope to further enrich the research on the real earnings management,and provide some reference for the future research.The innovation of this paper is the real earning management is used as the moderating variable at the first time to study the regulatory effect between the internal control and the enterprise performance.