An Empirical Study On The Relationship Between Internal Control Information Disclosure Quality,Managerial Power And Earnings Persistence

Earnings persistence is a hot issue in the research of capital market,an important index as a measure of corporate earnings quality.It can not only provide information about the users of accounting information and management decision-making over a period of time,also has various resources allocation of enterprise,create a more stable operation the environment,reduce the risk in the process of production and operation,and maintain the strategic objectives of sustainable development of the role of the enterprise.But in reality,earnings management behavior,undermines the authenticity and objectivity of accounting information quality.It has negatively affects on the earnings persistence of enterprises.Internal control plays an important role in the process of corporate governance,through the design and effective implementation of the system,measures and procedures to ensure that the enterprises to provide more reliable financial information for stakeholders.In addition,the separation between ownership and management situation,managers directly in charge of the company's daily business activities and various management information,when management power is too large,may be to seek personal interests on the earnings management manipulation,the board of supervision weakened the effect,and the effective internal control will the power of management of the expansion behavior be limited.Based on this,this article from the quality of information disclosure of internal control and management authority two aspects,the research and part of the impact of accounting earnings,and combine the three to explore the mechanism of interaction between the three,and then puts forward relevant policy suggestions,in order to enrich and improve the accounting earnings persistence theory the quality of earnings contribution.This paper uses the method of combining qualitative and quantitative,first systematically combed the related literature at home and abroad,and then,using the principal-agent theory,asymmetric information theory and the theory of effective capital market on the quality of information disclosure of internal control,management power and earnings persistence relationship theory analysis,put forward the research hypothesis.In the source of the data,select the Shanghai and Shenzhen A shares of Listed Companies in 2010-2016 data,select variables from five aspects of internal control,construction of internal control information disclosure index by using the entropy model,using principal components to construct a comprehensive index to measure the management of power analysis,with reference to previous studies of first-order autoregressive model the measurement of earnings persistence,and earnings persistence is subdivided into accruals earnings and cash flow earnings at the end of the two part,company size,financial leverage,and annual industry variables such as control,analysis of descriptive analysis,correlation analysis and multiple regression.The results show that:(1)the quality of internal control information disclosure is positively correlated with earnings persistence,and the impact of project earnings is more significant than cash surplus.(2)the greater the managerial power is,the worse the earnings persistence of the company is,and the negative impact of the earnings persistence on earnings persistence is more obvious.(3)high quality internal control information disclosure will weaken the negative correlation between management power and earnings persistence,and also weaken the negative correlation between management power and accruals earnings persistence and cash surplus persistence.Finally,according to the results of this study,we will give some suggestions and suggestions.At the same time,we put forward the deficiency of this research and look forward to the future research.