The Influence of Internal Control on Accrual Measure and Earnings Management

DOI

10.2991/meici-17.2017.59How to use a DOI?

Keywords

Internal control; Accrual measure; Earnings management; Internal control deficiencies

Abstract

This paper studies the internal control as the internal supervision mechanism of the enterprise, discusses its influence on earnings management with accrual measure of fair value between listed corporations with internal control deficiencies and without internal control deficiencies. The author examines the impact of internal control quality on accrual measure and earnings management through unpaired samples consisted of 1208 observations with internal control deficiencies and 3092 with perfect internal control from 2014 to 2016, based on the internal control of the listed company. The results indicate that listed companies usually adopt fair value of accrual measure as earning management tool，and internal control deficiency has influence on fair value and earnings management. The listed companies without internal control deficiency generally use investment income and assets impairment as earnings management tool，and those with internal control deficiency usually use extraordinary income as earnings management tool.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Chuyuan Huang
AU  - Mengnong Zhou
AU  - Jiayi Guan
PY  - 2017/10
DA  - 2017/10
TI  - The Influence of Internal Control on Accrual Measure and Earnings Management
BT  - Proceedings of the 7th International Conference on Management, Education, Information and Control (MEICI 2017)
PB  - Atlantis Press
SP  - 292
EP  - 297
SN  - 1951-6851
UR  - https://doi.org/10.2991/meici-17.2017.59
DO  - 10.2991/meici-17.2017.59
ID  - Huang2017/10
ER  -