Board Independence, Family Control and Earnings Management-Based on empirical research on listed companies in Shanghai and Shenzhen Stock Markets
Pages 97 - 104
Abstract
In the research on the impact of board independence on corporate earnings management, few existing literatures discuss the impact of family control on the relationship between the two. Based on the panel data of Shanghai and Shenzhen listed companies from 2015 to 2019, this paper aims to empirically analyze the impact of board independence on corporate earnings management, and explores the moderating effect of family enterprise and corporate family control on each impact path. The main conclusions are as follows: the increase of the proportion of independent directors to the total number of directors does not affect the accrued earnings management, but promotes the degree of real earnings management behavior, and the two-duty separation of chairman and CEO can effectively inhibit the occurrence of the two types of earnings management. In family firms, the influence of the proportion of independent directors on real earnings management is limited, and the moderating effect of this inhibition is more significant with the increase of corporate family control. The research conclusions of this paper provide reference for the study of the relationship between board independence, family control and earnings management, and provide suggestions for the innovation of corporate governance mechanism and supervision system.
References
[1]
Current & Mentary Analysis of Earnings Management in China [J]. Journal of Optics and Optics, 1989(3).
[2]
Klein A. Audit committee, board of director characteristics, and earnings management[J]. Journal of accounting and economics, 2002, 33(3): 375-400.
[3]
Ke Chengen.Family Holding, Research on Group Enterprises and Earnings Management[J]. 1999.
[4]
Xiao Jie. The Influence of Board Independence of Family Enterprises on Earnings Management [J]. Cooperative Economy and Technology, 2020(17):140-141.
[5]
Yu Beibei, Huang Qiongyu, Wang Qiuyue. Involvement of Family Members in Board of Directors and Earnings Management [J]. Finance and Accounting Communications, 2019(21):106-110.
[6]
Zhong Chengming. Research on the influence of board governance of listed family enterprises on their earnings quality [D]. Hunan Normal University, 2016.
[7]
[Wang Y H.Empirical research on the relationship between corporate governance structure and real active earnings management of listed companies [D]. Nanchang University,2012.
[8]
Xue Yongjiang. Firm industry Expertise, Board independence and real Earnings Management [J]. New Accounting,2013(03):14-18.
[9]
Lofgren K G, Persson T, Weibull J W . Markets with Asymmetric Information: The Contributions of George Akerlof, Michael Spence and Joseph Stiglitz[J]. Social Science Electronic Publishing.
[10]
Jiang Weilin, Li Qiqi, Xiang Rui. Board characteristics and corporate earnings management: A study based on Panel Data of Chinese private listed companies [J]. Soft science, 2011, 25 (5) : 142-144.
[11]
Su Weidong, Wang Jiasheng. Earnings management and board characteristics: An empirical study based on panel Data [J]. World Economic Review,2006(06):56-62.
[12]
Gao Xiaoli. Research on the impact of Excess control rights on earnings Management of Family Firms [D]. Xi 'an: Xi 'an University of Technology,2019.
[13]
Patricia M. Dechow, Detecting Earnings Management [J]. The Accounting Review, 1995, 70:193-225.
[14]
Sugata Roychowdhury. Earnings management through real activities manipulation[J]. Journal of Accounting & Economics, 2006, 42 (3) : 0-370.
[15]
Baron, R. M. & Kenny, D. A. (1986). The Moderator – Mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
[16]
Muller D, Judd C M, Yzerbyt V Y . When moderation is mediated and mediation is moderated.[J]. J Pers Soc Psychol, 2005, 89 (6) : 852-863.
[17]
Ruo Yanxin, Ma Zhiming, Wulina. The influence of related party information spillover on analysts [J]. Accounting Research,2020(03):46-53.
[18]
Dou Junsheng, Zhang Lingli, Wang Ning. Social emotional wealth: A perspective from family business research [J]. Foreign economics and management,2014,36(12):64-71.]
Recommendations
Does Earnings Management Affect Bond Returns?: Empirical Evidence from China's Bond Market
ICSEB '21: Proceedings of the 2021 5th International Conference on Software and e-BusinessIn this paper, corporate bonds and enterprise bonds existing in 2011-2019 in China are included as samples in an empirical study on the relationship between earnings management and cross-sectional return on credit bonds using the method of univariate ...
An Empirical Study on the Linkage between Shanghai and Shenzhen Stock Index Futures and Spot Prices
ISBDAI '20: Proceedings of the 2020 2nd International Conference on Big Data and Artificial IntelligenceThis article studies the linkage between stock index futures and stock index from two aspects, namely price priority and volatility spillover effects. Price priority is the relationship between price priority and lag. By studying price priority, we can ...
Modeling Return Rate Correlation between Shanghai and Shenzhen Stock Markets Using Copula Function
WI-IAT '12: Proceedings of the The 2012 IEEE/WIC/ACM International Joint Conferences on Web Intelligence and Intelligent Agent Technology - Volume 03This paper explores to model return rate correlation between Shanghai and Shenzhen stock markets, especially to discover tail dependence between them, in order to find simultaneous rise or fall of the two markets. Copula function that is good for ...
Comments
Information & Contributors
Information
Published In
April 2022
497 pages
ISBN:9781450395816
DOI:10.1145/3535782
Copyright © 2022 ACM.
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]
Publisher
Association for Computing Machinery
New York, NY, United States
Publication History
Published: 18 July 2022
Check for updates
Qualifiers
- Research-article
- Research
- Refereed limited
Funding Sources
- Modern financial supervision from the perspective of institutional investors and earnings management
Conference
MSIE 2022
MSIE 2022: 2022 4th International Conference on Management Science and Industrial Engineering
April 28 - 30, 2022
Chiang Mai, Thailand
Contributors
Other Metrics
Bibliometrics & Citations
Bibliometrics
Article Metrics
- 0Total Citations
- 73Total Downloads
- Downloads (Last 12 months)32
- Downloads (Last 6 weeks)0
Reflects downloads up to 08 Mar 2025
Other Metrics
Citations
View Options
Login options
Check if you have access through your login credentials or your institution to get full access on this article.
Sign inFull Access
View options
View or Download as a PDF file.
PDFeReader
View online with eReader.
eReaderHTML Format
View this article in HTML Format.
HTML Format