The Relationship Between Internal Control Quality, Ownership Type, and Earnings Management: The Moderation of the COVID-19 Pandemic
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v6i2.3976
Abstract
This paper examines the relationship between internal control and corporate earnings management using Chinese A-share listed companies from 2013 to 2023 as research subjects, while investigating the moderation of the pandemic factor. Furthermore, it introduces ownership nature to explore whether the relationship between internal control and earnings management, as well as the pandemic"s moderating effect, varies across enterprises with different ownership structures. The findings reveal that effective internal control can reduce the level of corporate earnings management, with the pandemic strengthening this relationship. And the relationships are influenced by corporate ownership nature. Internal control in non-state-owned enterprises demonstrates greater effectiveness in curbing earnings management behaviors.
Keywords
internal control, ownership nature, earnings management, COVID-19 Pandemic
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[2]Maggio D M,Kermani A,Song Z.The value of trading relations in turbulent times[J].Journal of Financial Economics,2017,124(2):266-284.
[3]Li Shu, Liang Yu-Xin, Tian Ma-Fei. Internal control quality, nature of ownership and surplus persistence[J]. Auditing and Economic Research,2017,32(01):23-37.
[4]Lyu Xiaoqian. Research on the impact of enterprise internal control on surplus management[J]. Study of Finance and Accounting,2023(07):167-169.
[5]Luo Yan,Li Yujie. Motivation and governance of surplus management in listed companies[J]. Research on Business Economy,2016,(19):183-184.
[6]WU Meng,WEI Wenjun. Internal control, financing constraints and surplus management[J]. Times Economy and Trade,2020,(02):61-64.
[7]Yang Jinyu, Liu Bin, Sun Li. Surplus management, executive compensation sensitivity and equity structure[J]. Journal of Chongqing University (Social Science Edition), 2013,19(02):70-76.
[8]Zou Juan. The impact of internal control auditing on corporate accruals and true surplus management[J]. Finance and accounting newsletter,2020(21):48-5.
Copyright © 2025 Yanyan Zhang, Luyue Yao, Xiaoyuan Xu
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