Equity Pledge of Controlling Shareholders, Internal Control and Earnings Management

DOI

10.2991/978-94-6463-256-9_92How to use a DOI?

Keywords

Equity pledge; Internal control; Earnings management

Abstract

From 2012 to 2017, a-share listed companies with stock pledge behaviors of controlling shareholders in Shanghai and Shenzhen stock exchanges were selected as the research object to study the influence of stock pledge behaviors of controlling shareholders of listed companies on internal control and earnings management. The research shows that with the increase of the equity pledge ratio of the controlling shareholder, the quality of internal control of the enterprise will decrease, and the accrual earnings management and real earnings management will increase. Further study found that after the controlling shareholder's equity pledge relatively less costly true earnings management is likely to be carried out by reducing the quality of the company's internal controls.

Copyright

© 2024 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  - Yanping Liu
AU  - Zhiyi Huang
AU  - Rong Wang
PY  - 2023
DA  - 2023/10/09
TI  - Equity Pledge of Controlling Shareholders, Internal Control and Earnings Management
BT  - Proceedings of the 2023 4th International Conference on Management Science and Engineering Management (ICMSEM 2023)
PB  - Atlantis Press
SP  - 936
EP  - 946
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-256-9_92
DO  - 10.2991/978-94-6463-256-9_92
ID  - Liu2023
ER  -