A Study On The Influence Of Corporate Governance In Chinese Listed Companies On Informative Earnings Management

Financial theory believes that because of the agency conflict and information asymmetry between corporate managers and external investors,external investors have a demand for the quality of financial reporting and information disclosure.Under the separation of ownership and management rights,the enterprise managers may not act in the best interest of the owner in order to maximize their own profits.In order to supervise and control the enterprise managers,the owners and managers of the companies regulate the behaviors of the managers by entering into contracts.The managers report the operating results and development status of the enterprise to the owner through financial reports.Therefore,the quality of accounting information in financial reports is particularly important.In the process of securities market transactions,the quality of accounting information is closely related to the external stakeholders.The quality of accounting information directly affects the investors' business decisions.Many empirical studies have found that corporate governance structure is one of the important factors affecting earnings management.The main purpose of corporate governance is to supervise the behavior of various stakeholders and reduce the agency costs based on various principal-agent relationships.Good corporate governance can reduce agency costs.Second,it can reduce information asymmetry inside and outside the company and ensure the authenticity and reliability of financial reports.Corporate managers will manipulate corporate earnings according to different motives.Speculative earnings management motivation is the main motivation for corporate managers to manipulate earnings.If the securities market is effective,corporate managers are likely to use their internal information to use earnings management as a tool for information exchange with investors,and to disseminate company development status and earnings to external investors in the form of issuing corporate financial reports.It is expected that this kind of earnings management for the purpose of transmitting internal company information is called informational earnings management.Informative earnings management,to a certain extent,reduces information asymmetry inside and outside the company,has a positive impact on the usefulness and predictability of earnings information,and can enhance the relevance of financial reporting to external information user decisions.This article assumes that listed company managers with a sound corporate governance structure are more willing to conduct informative earnings management and use the measure methods of reasonable and measurable informative earnings manage to use all listed A-share companies in Shanghai and Shenzhen in 2014-2016.The company's quarterly financial data empirically studies the impact of corporate governance on earnings management from the perspective of informative earnings management.The research shows that listed company managers with a sound corporate governance structure are more willing to conduct informative earnings management.Corporate governance structure has a positive impact on managers' informative earnings management.A sound corporate governance structure can improve the transparency of financial reports and earnings information content.It proposes systematic policy recommendations in the three perspectives of equity structure,board of directors characteristics,and board of supervisors in the corporate governance structure,and it hopes to play a positive role in the improvement and perfection of corporate governance structure in China.