Research On The Impact Of Manufacturing Enterprise Audit Quality On Management Power And Earnings Management

The development of manufacturing industry reflects the economic development and production level of a country.Manufacturing industry has an important impact on China's economic development.Therefore,China's premier proposed the "made in China 2025" plan to further promote the sound and rapid development of China's manufacturing industry.The quality of financial information has an important impact on the development of manufacturing industry.Earnings management is usually led by the management.How does the power of the management,as an important dimension of the characteristics of the management,affect earnings management? At the same time,audit plays a supervisory role in the quality of financial information of enterprises.What influence will the audit quality of external audit have on the relationship between management power and earnings management? To solve the above problems,this paper explores the relationship between management power and earnings management in manufacturing enterprises,as well as the influence of audit quality of external audit on the relationship between management power and earnings management in manufacturing enterprises.Based on the data of China's listed manufacturing companies from 2014 to 2018,this paper constructs a regression model between audit quality,management power and earnings management of manufacturing companies,conducts an empirical study and verifies relevant hypotheses.Through empirical analysis,this paper finds that in manufacturing enterprises,the more serious the excessive power of the management layer is,the more prominent the earnings management behavior of the management layer is.Meanwhile,the audit quality of external audit can effectively weaken the relationship between the management layer power and earnings management of manufacturing enterprises.Based on the above empirical research results,this paper puts forward some reasonable Suggestions,which provide some empirical evidence for the empirical research on audit quality,management power and earnings management.