The impact of internal control and executive power: An approach to promoting the quality of accounting information in Chinese quoted firms

摘要

This paper analyses the relations among internal control, executive power and the quality of accounting information in Chinese quoted firms based on the theories of earnings management and financial restatements. The results show that improving the circumstances of internal control is conducive to enhancing the quality of accounting information. Without doubt, the effects of internal control on the quality of accounting information in Chinese quoted firms are subject to the framework of power configuration. Furthermore, this paper also finds that the improvement of internal control in the conditions of executive power has no significant effects on the quality of accounting information. The findings in this paper will contribute to understanding the construction and implementation of internal control for China's regulatory agencies, practitioners, academics and Chinese quoted firms. And our research can also bear testimony to improving the internal control of Chinese quoted firms and institutional buildings in subsequence.