An Empirical Study On Ownership Concentration,internal Control And Earnings Management

At home and abroad in recent years,accounting fraud,financial fraud occurred frequently,such as Enron Corp and WorldCom that multinational companies have exposed the accounting scandal,the case of the green earth in the domestic market from the company listed on the main board of Yinguangxia bankruptcy to small and medium sized listed companies to gem Edmond branch,sea Nexis financial losses etc.financial fraud cases.The financial fraud and earnings management of these companies are closely related,reflecting the serious phenomenon of earnings management of listed companies.Ownership structure is the property right foundation of corporate governance,corporate governance and governance mechanism play a decisive role,and ultimately affect the establishment and improvement of internal control.In the theoretical research of modern enterprises,the ownership structure is different,the principal-agent supervision ability and enthusiasm for equity structure will vary,so the company's ownership structure and internal control efficiency are closely related.Ownership concentration and internal control are important aspects of earnings management.Whether there is relationship between ownership concentration degree,internal control and earnings management? Whether this relationship determines the effectiveness of internal control and earnings management? This paper aims to study the relationship between ownership concentration,internal control and earnings management,find out the root cause of earnings management.This paper selects 2327 listed companies of Shanghai and Shenzhen A stock as the research samples,and takes the 2015 annual report as the data source to study the relationship between ownership concentration,internal control and earnings management.The results showed that:(1)internal control and earnings management of listed companies negatively related to internal control can inhibit the earnings management;(2)the ownership concentration is positively related to earnings management and real earnings management,accruals is higher than the degree of earnings management;(3)the ownership concentration and internal control influence earnings management,equity concentration the degree is high,can reduce the relationship between internal control and earnings management.Finally,this paper makes a brief summary of relevant research conclusions,puts forward the relevant recommendations of this paper,and describes the shortcomings of this study.