Research On The Impact Of The Application Of Fair Value On Earnings Management

Based on the sample data of 2380 listed companies from 2013 to 2016,this paper studies the impact of fair value measurement attributes on earnings management activities.On this basis,taking the quality of internal control as the adjusting variable,this paper studies the impact of fair value measurement attributes on earnings management activities under the adjusting effect of internal control quality.Firstly,this paper clarifies the background and significance of the study.It holds that with the deepening development of market economy,the acceleration of economic and social internationalization and financialization,the application of fair value measurement in China’s accounting measurement is gradually expanding.Because many listed companies’ internal control system are not perfect,and the external supervision mechanism needs to be improved,the phenomenon of earnings management using fair value measurement is still widespread,and the existence of internal control deficiencies aggravates the earnings management activities of enterprises.This paper combs and summarizes the relevant research literature on fair value measurement,earnings management and internal control at home and abroad,and expounds the research content,research framework,research methods and innovations of this paper.Secondly,it defines the core concepts of fair value measurement,earnings management and internal control quality,and puts forward the hypothesis of this study based on the previous elaboration and the theoretical basis of fair value application,earnings management and internal control.The hypothesis of this paper is divided into two parts: without considering the quality of internal control,the hypothesis about the impact of fair value measurement attributes on earnings management is put forward;the quality of internal control is taken as a moderating variable,and the hypothesis about the impact of fair value measurement attributes on earnings management is put forward based on the perspective of internal control quality.According to the research hypothesis,the application of fair value of sample enterprises and the current situation of earnings management,an empirical model is constructed.Through theoretical analysis,sample status analysis and empirical analysis,the main conclusions of this paper are as follows: there are some cases of earnings management activities through fair value measurement attributes in sample enterprises;the defects of internal control system intensify the behavior of listed companies using fair value measurement attributes for earnings management;and the control samples without internal control defects.The group’s test results show that enterprises with internal control deficiencies use fair value measurement to conduct earnings management activities are more obvious.Finally,based on the analysis,this paper draws conclusions,puts forward relevant policy recommendations to standardize the use of fair value and strengthen the construction of internal control system,and points out the limitations and future prospects of the article.