The Research on the Relationship between Internal Control Quality and Earnings Management of Manufacturing Enterprises

DOI

10.2991/978-94-6463-056-5_80How to use a DOI?

Keywords

Internal Control Quality; Earnings Management; Manufacturing Enterprise

ABSTRACT

The occurrence of earnings management adversely affects the development of enterprises and investors' decisions. As an important part of China's economic development, manufacturing enterprises are highly sensitive to the impact of internal and external environment due to their industry nature, such as large capital demand and complex production process. Therefore, in order to strengthen enterprises' attention to the construction of internal control norms, enrich the research content of internal control quality and earnings management, this paper uses the data of listed manufacturing companies from 2011 to 2020 as samples to explore the relationship of internal control quality with accrued and real earnings management, and further analyses the difference of influence degree caused by different property rights, listed sectors and marketization process of enterprise location. It is found that for listed manufacturing enterprises, the improvement of internal control quality has a significant inhibiting effect on the degree of accrued and real earnings management. For accrued earnings management, the inhibiting effect is more obvious in non-state-owned enterprises, main board listed companies and enterprises in the region of low marketization process. For real earnings management, the inhibiting effect is more obvious in state-owned enterprises and enterprises in the region of high marketization process.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yuanhui Li
AU  - Lifan Zhang
PY  - 2022
DA  - 2022/12/29
TI  - The Research on the Relationship between Internal Control Quality and Earnings Management of Manufacturing Enterprises
BT  - Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)
PB  - Atlantis Press
SP  - 548
EP  - 553
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-056-5_80
DO  - 10.2991/978-94-6463-056-5_80
ID  - Li2022
ER  -