Research On Fair Value,Internal Control And Earnings Management

Due to the rapid development of economic globalization and market economy,the demand for fair value is increasing day by day.With the continuous progress of international convergence of accounting standards,China's accounting standards are constantly improving.After reintroducing the measurement attribute of fair value in 2006,the independent fair value accounting standard "accounting standard for enterprises no.39--fair value measurement”(CAS39) was promulgated in 2014,and was formally implemented in July 2014.The implementation of CAS39 marks China's recognition of fair value.Fair value has certain advantages and disadvantages.With the promotion of fair value,some problems have surfaced.Its unique uncertainty can be well measured according to market changes,but it has also become a means for listed companies to conduct earnings management.How to avoid its adverse effects is the focus of fair value research.Good internal control can restrain listed companies from earnings management,but due to the late establishment and imperfect internal control system in China,the impact on fair value and earnings management is unknown.Therefore,this paper firstly introduces the background and significance of the research.Based on accounting standards for enterprises no.39--fair value measurement,this paper analyzes the relationship between fair value and earnings management.Then,based on the perspective of China's internal control,this paper studies whether good internal control can have an impact on the relationship between fair value and earnings management,and then puts forward relevant hypotheses.From 2015 to 2017,a-share listed companies were taken as samples and screened.Finally,4,307 samples were selected for descriptive statistics,Pearson correlation test,regression analysis and stability test to demonstrate the hypothesis mentioned above.And draw relevant conclusions:(1)listed companies generally use fair value for earnings management behavior.(2)with different levels of internal control,listed companies have different degrees of earnings management using fair value.Finally,relevant Suggestions are put forward for listed companies to use fair value for earnings management,including strengthening extetrnal supervision environment and fitness and strengthening internal system norms of listed companies.Innovation point of this article is based on a new perspective,to explore the level of quality of internal control of enterprise through the fair value of the impact of earnings management behavior is analyzed,enrich the internal control,the relationship between fair value and earnings management research,at the same time also to perfect the internal control requirements and points out the specific direction are put forward.At the same time,this paper introduces dibo internal control index to measure the quality of internal control,quantifies the level of internal control,and USES the average value of internal control quality of each industry as the grouping basis.More scientific and detailed samples of the internal control level of the grouping and research on the target problem.It is of great significance to restrain listed companies from earnings management through fair value.