TITLE:
Internal Control Information Disclosure Quality, Agency Cost and Earnings Management—Based on the Empirical Data from 2011 to 2013
AUTHORS:
Yunchao Ying
KEYWORDS:
Internal Control Information Disclosure, Agency Cost, Earnings Management, Information Disclosure Index
JOURNAL NAME:
Modern Economy,
Vol.7 No.1,
January
25,
2016
ABSTRACT: Internal control information disclosure is a key factor to investors’
decisions, and is closely connected with corporate governance. It also has a
direct impact on agency cost and earnings management. This article verifies the
relationship between internal control information disclosure, agency cost and
earnings management with the Shenzhen A-share listed companies from 2011 to
2013 as samples, and we build the internal control information disclosure index
(ICIDI) to evaluate the quality of internal control information disclosure
based on the Standard for Enterprise Internal Control. By analyzing, we found
that internal control information disclosure can affect earnings management
through agency cost, and the improvement of internal control information
disclosure will effectively reduce agency cost, thus reducing earnings
management.