Research On The Influence Of Government Audit On Earnings Management Of Central Enterprises

Earnings management widely exists in the management of central enterprises in our country.The central enterprises belong to one kind of state-owned enterprises,and their management adopts the employment system.In order to achieve self-interest,the management will adopt some methods to hide the real earnings performance.On the one hand,the existence of earnings management will affect the accounting information users to make accurate decisions,on the other hand,it will affect the optimal allocation of resources in the capital market.Due to management manipulation of accrual and real earnings,accounting information is distorted.Therefore,earnings management is one of the hot topics in accounting empirical field.Since 2003,the National Audit Office has been conducting financial revenue and expenditure audits on central enterprise groups.The purpose of this paper is to find out the central enterprise's non-compliance audit and ask the central enterprise to make audit rectification and maintain the security of the state-owned assets.Through the research of a large number of scholars' study,it has been found that the government audit has a supervisory role in the governance of state-owned enterprises,which can reveal some enterprises' violations,prompt companies to make rectification according to the audit recommendations,and reduce the distortion of financial statements.It is necessary to study whether the implementation of government audit can help to improve its operating performance and restrain the earnings management behavior of central enterprises.Thus,we need to know whether government audit plays a supervisory role in the management of central enterprises.Therefore,under the understanding government audit governance function,studies the government audit function to the central enterprise earnings management influence degree,through collates and summarizes the domestic and foreign related literature research,in order to be entrusted with the economic responsibility theory,Based on the new public management theory and economic supervision theory,taking the relationship between the government audit and the earnings management of the central enterprise as the research object,this paper puts forward the hypothesis,sets up the variables,and constructs the relevant research model.Taking the listed central enterprises published by the Audit Commission for 2011-2017 and the unaudited listed central enterprises as research samples,descriptive statistics,correlation analysis,multivariate regression analysis,stability analysis,analysis of the relationship between the two,and draw three conclusions were used.First,the government audit has no significant influence on the accrual earnings management of the central enterprise;second,the government audit intervention can significantly restrain the real earnings management level of the central enterprise;third,when the government audit announces the audit announcement,it can significantly reduce the level of realearnings management of central enterprises;fourth,the level of earnings management of central enterprises can be significantly reduced when the central enterprises carry out audit rectification.Finally,according to the relevant research conclusions,the paper puts forward some feasible countermeasures to improve the reliability of accounting information quality by giving play to the functions of government audit supervision,evaluation and governance,reducing the degree of earnings management in central enterprises and enhancing the reliability of accounting information quality.