Corporate Governance?Internal Control And Earning Persistence

The persistence of accounting earnings is an important index to measure earnings quality.It has the function of guiding resource allocation in capital market.There are many factors that affect earnings persistence,including corporate governance and internal control.At present,many enterprises have problems of earnings manipulation,which seriously affect the healthy development of enterprises and cause great economic losses to stakeholders.These phenomena make the society begin to pay attention to the sustainability of the enterprise's earnings.It is of great theoretical and practical significance to study the influence of internal control on the sustainability of earnings under the internal control of the internal control policy.This paper first combs the research literature on the relationship between corporate governance and internal control,corporate governance and earnings persistence,internal control and earnings persistence,and summarizes the principal-agent theory,information asymmetry theory,corporate governance theory and stakeholder theory.Secondly,it analyzes corporate governance by using basic theory.The influence mechanism of internal control,the mechanism of corporate governance on earnings persistence and the mediating effect of internal control on earnings persistence of corporate governance are analyzed.After 2012-2016 years of all A shares listed companies as the research object,from four aspects of ownership structure,board of supervisors,board of directors and manager level,10 indexes are selected to use factor analysis to build the corporate governance index model,and a multiple regression model is designed to test the corporate governance structure,internal control and corporate governance.The relationship between structure and earnings persistence,and the mediating effect of internal control on corporate governance structure and earnings persistence.The results are as follows:(1)the corporate governance is positively correlated with the internal control,the better the corporate governance structure,the higher the quality of the internal control;(2)the corporate governance is positively correlated with the earnings persistence,and the enterprises with different equity properties have significant differences;(3)the corporate governance and accruals surplus There is no significant correlation between the positive correlation and the cash surplus;(4)the internal control plays a partial intermediary role between the corporate governance and the earnings persistence.Through the above research,enterprises can improve earnings persistence in a more reasonable way.