Management Power,the Quality Of Internal Control And Transparency Of Accounting Information

As the ultimate reflection carrier of the company's financial status and operating results,accounting information can truly reflect the reality of the company and plays a vital role in the capital market.Accurate,comprehensive and true accounting information is the cornerstone of capital market development,high-quality accounting information enables internal and external stakeholders to better understand the real situation of enterprises and provide investors with reliable investment decision reference information.Therefore,highly transparent accounting information is one of the goals pursued by capital markets and investors in various countries.However,in recent years,a series of financial fraud have seriously interfered with the normal operation of the capital market and hindered the healthy development of the economy.In the process of business management,managers determine the authenticity and integrity of external information disclosure,however,due to the existence of information asymmetry and agency problems,it is not uncommon for management to manipulate private accounting information for personal gain.Management's self-interested behavior will inevitably have an adverse impact on the transparency of accounting information,as power plays an important role in the management of the company's operations,management will inevitably rely on its information decision-making power to achieve its rent-seeking behavior.In addition,internal control has received increasing attention since the US Sarbanes-Oxley Act was enacted,from the perspective of the internal control framework,internal control reflects the management will and intention of management to a certain extent,when designing and developing internal controls,management is responsible for the design and implementation of internal controls,on the other hand,it is also subject to its supervision and control.High-quality internal control is the guarantee of the true and complete financial information of enterprises.After the new internal control guidelines are promulgated,will the transparency of corporate accounting information be affected accordingly? and what role does internal control play in the relationship between management power and transparency of accounting information? This is the focus of this paper.Based on the existing research,this paper takes the transparency of accounting information as the research object,and combines the theory of information asymmetry,management power theory,high-level echelon theory and incomplete contract theory to propose the hypothesis of this paper.Through empirical tests,the impact of management power on the transparency of accounting information and the different roles played by internal control in this process are demonstrated.The research results show that the greater the power of management,the lower the transparency of accounting information,internal control plays a part in mediating transmission during the process of management power affecting the transparency of accounting information,internal control is also a regulatory variable that affects the transparency of accounting information by management power,which can inhibit the negative impact of management power on the transparency of accounting information to a certain extent,in enterprises with high concentration of ownership,this inhibition of internal control is more obvious.Compared with non-state-owned enterprises,the internal control of state-owned enterprises has more prominent effects on the transparency of accounting information for management power.According to the research conclusions,this paper proposes the following suggestions: in order to reduce the negative impact of management power on the transparency of accounting information,on the one hand,we should strengthen corporate governance,constrain management behavior,strengthen the supervision and incentive mechanism for management by regulating the operation of the board of directors and improving the manager market;on the other hand,it should improve the internal control system,improve the quality of internal control,and highlight internal control.Constraining the power of management to better improve the transparency of accounting information.Finally,we should also improve the information disclosure mechanism and strengthen internal and external supervision in the process of information disclosure.