| With the continuous convergence of accounting standards in China,the accounting system is becoming more and more perfect.Since 2006,China’s accounting standards to re-introduce the fair value measurement attributes,41 of the specific accounting standards,18 have applied to the fair value measurement attributes.In January 2014,China’s Ministry of Finance introducted the "Enterprise Accounting Standards No.39-Fair Value Measurement"(CAS39),since the formal implementation in July 2014.According to China’s current market conditions,the provisions of the fair value of the measurement and disclosure became more and more fairly detailed and strict.CAS39 marks the implementation of the more recognized fair value measurement.For the re-introduction of the fair value measurement model,it is necessary to consider whether the fair value measurement model will affect the earnings management of the company because of its own subjective characteristics.In May 2008,China’s Ministry of Finance promulgated the "basic norms of internal control" and in April 2010 promulgated the "Guide to supporting internal control" form the China’s internal control system.Although the internal control system has been basically completed,but because of the late establishment of the internal control system is still imperfect,so its management for the use of fair value for earnings management uncertainty is uncertain,need in-depth study.In this paper,we first review the literatures related to this paper,then analyze and comment on it.Based on the theoretical analysis,this paper puts forward the hypothesis.This paper studies the effect of fair value measurement and internal control on earnings management from 2008 to 2014 A-share listed companies in Shanghai and Shenzhen.Pearson correlation analysis was used to test the hypothesis,and the hypothesis was further validated by multiple regression analysis.First,the fair value measurement is positively related to the earnings management,and the fair value measurement may become a means of management manipulation of earnings.Secondly,under other conditions,the high quality of internal control can significantly reduce the level of enterprise earnings management,and can reduce the impact of fair value measurement on enterprise earnings management.According to the nature of the property rights of enterprises,the further study shows that: the non-state-owned enterprises with fair value measurement have a greater degree of earnings management than state-owned enterprises.This paper studies the impact of fair value measurement on earnings management,and tries to find out the influence of the quality of internal control on the relationship between fair value measurement and earnings management.It highlights the important role of internal control and provides supervision basis for supervisory authorities,While providing policy makers with some reference. |
