The Influence Of Equity Restriction Ratio And Internal Control On Earnings Management On Listed Company

In recent decades,especially since the reform and opening up,the capital market of our country has been developing rapidly.The capital market has become an important part of our socialist market economy system.As an important group in the capital market,listed companies have equity checks and balances.The correlation between internal control and earnings management is concerned by more and more scholars.The equity structure is the internal reflection of the risk-bearing and profit allocation mechanism of the company,and it is the foundation of the corporate governance structure.One of its important measures is equity balance degree.It is worth discussing whether the listed company will influence earnings management because of establishing effective check and balance mechanism.At the same time,internal control is an important tool to measure the risk control ability of the company.It is self-evident that the effectiveness of internal control can affect earnings management,which has become a big problem faced by senior managers.In view of the special market environment of the listed companies in China,previous studies have focused less on the relationship between equity checks and balances and earnings management in terms of equity concentration.In particular,the "supporting guidelines on Enterprise Internal Control",as stipulated by the five ministries and commissions,have been officially implemented by companies listed on the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange since January 1,2012.The implementation of this new guideline will have a corresponding indicative effect on the market behavior of our country.In this new market background,through empirical research,the paper explores the influence of equity balance degree and internal control on earnings management.It is necessary to put forward some policy suggestions to improve the performance of the company.