Management Shareholding,Internal Control And Performance Forecast Revision

In recent years,listed companies have become more and more standardized in implementing performance prediction policies.However,the phenomenon that listed companies modify their performance expectations and then issue performance prediction and correction announcements has occurred from time to time,which not only damages the corporate image,but also brings losses to investors.Although some of the reasons are caused by changes in the external macro environment,the main reason is due to the failure of internal control and non-standard corporate governance.Therefore,this paper takes the internal control as the research perspective,combing the current reality and institutional background,referring to the relevant domestic and foreign literatures on management shareholding,internal control and performance prediction and revision,and summarizing them,so as to determine the research direction of this paper.Then using internal control as a mediation variable,management equity as the explained variable,performance forecast to be explained variable,respectively discusses the management equity and earnings forecast correction,management equity and internal control and internal control in the management equity and performance forecast correction mediation between the conduction effect,find out the three transmission path.The final empirical results show that :(1)the management shareholding is significantly negatively correlated with the performance forecast correction,that is,the higher the management shareholding is,the fewer the performance forecast correction is.(2)there is a significant positive correlation between management shareholding and internal control,that is,the ratio of management shareholding is positively correlated with the quality of internal control.(3)internal control is the mediating variable between management shareholding and performance prediction and correction,and there is a conduction relationship among the three,that is,management shareholding affects performance prediction and correction through influencing internal control.(4)there is a difference in the intermediary effect of the internal control of enterprises with different property rights in the influence of management shareholding on the performance prediction and correction,that is,the internal control of private enterprises has an intermediary effect in the influence of management shareholding on the performance prediction and correction,while state-owned enterprises do not.In addition,this paper also tests the robustness of the empirical results,and the results are still robust.The innovation of this paper lies in: on the one hand,existing literature focuses more on the quality of performance forecast,including accuracy and timeliness,etc.This paper breaks the previous research on the quality of performance forecast,and studies the modification behavior of performance forecast of listed companies instead,which is a supplement to the relevant literature on the influencing factors of the current research on performance forecast modification.On the other hand,for the first time,this paper applies the research method of mediating variables to put the three variables into the same model at the same time,and analyzes the mediating effect of internal control in the relationship between the three variables.