Research On Managerial Background Characteristics,internal Control Efficiency And Earnings Management

Since the beginning of this century,there has been a large number of fraud cases in China stock market,including agricultural listed companies Caoyuanxingfa(000780),Wanfushengke(300268),Lantian(600709),Lvdadi(002200),and so on.Related studies have found that the internal control effectiveness in Chinese agriculture listed companies is uneven and the efficiency of earnings management is also worrying.Different from the previous research which dominant hard factors of the effectiveness of internal control and earnings management,this article focus on the soft factors of the management background characteristics,and try to find the relationship among management background characteristics,internal control effectiveness and earnings management of agricultural listed companies.This research is not only can strengthen agriculture listed companies' human resource management,but also can improve their internal control effectiveness,and inhibit excessive earnings management.This paper takes Chinese agricultural listed companies as the research object,through a series of screening process,finally select 159 valid sample in 2012-2016.Based on the human capital theory,principal-agent theory,the upper-echelons theory and the theory of internal control,this paper did the research from the perspective of management background characteristics,analysis and tests the effectiveness of the agricultural listed companies' internal control and earnings management.The research found that the higher level internal control effectiveness,the more able to play the role of inhibition of enterprise earnings management significantly.With the age of managers growing there is u-shaped curve between the internal control effectiveness and earnings management.The higher average education level and longer average time in position of managers,the more effective enterprise internal control,which makes the inhibition of internal control effectiveness on earnings management more obvious.Based on this,we suggest as follows: From the micro-perspective,agricultural listed companies' should considerate age,education and term of office in managers' recruitment,assessment,and promotion.Try to consider as many experienced middle-aged people as possible,the management team should try to be composed of highly educated people,it is recommended that the manager's term be appropriately extended.From macro-perspective,agricultural listed companies' should speed up the construction of manager market and the improvement of the managers' file,accelerate the establishment of effective supervision mechanism with sound internal and external linkage.