Financial distress, internal control, and earnings management: Evidence from China

Li, Yuanhui; Li, Xiao; Xiang, Erwei; Djajadikerta, Hadrian Geri

doi:10.1016/j.jcae.2020.100210

Cited by 110 publications

(141 citation statements)

References 53 publications

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“…Detection of violations and formation of the conclusion on the results of inspection. The experience of foreign authors is very useful for deepening theoretical and methodological foundations of internal control [25][26][27][28].…”

Section: Debts Of the Organization To Employees On Remuneration Of Labormentioning

confidence: 99%

Internal control of transactions operation in the sustainable management system of organizations

et al. 2021

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In modern conditions one of the main problems of economic entities is the increase in accounts receivable and payable, which is influenced by objective and subjective factors. In this connection the role of internal control of settlement operations is increasing. The aim of the article is to improve methodological support of internal control of settlement operations for increasing the quality of audit, providing information about the state of settlements with contractors to the management of enterprise for making operational and strategic management decisions. The proposed methodological support is based on stage-by-stage audit of settlement operations including the following main stages: audit planning; implementation of control procedures; execution of audit results. the peculiarity of internal control of settlement operations is determined by a variety of normative and information support of the audit. For the purpose of improvement of control procedures in the course of the study working documents of internal control have been developed. The working document «Verification of the availability of the agreement with a separate counterparty» can be used by the controller to identify errors arising in the preparation of the contract, as well as to determine the completeness and timeliness of the parties to fulfill their obligations, With the proposed in the study working document «Confirmation of the status of settlements with counterparties» can identify cases of fraud and misstatement of data contained in the financial statements. In the course of the study it was proposed to perform a point-rating assessment of debtor reliability based on a system of key indicators in the internal control process. The suggested rating estimation of counterparties will make it possible to carry out their comparative analysis and grouping as well as to identify those counterparties that have a high probability of non-payment of existing debts. The practical significance of the study lies in the possibility of using the developed approaches to determine the information base, to set the purpose and definition of control tasks, to the rational choice of control procedures, to the use of working papers in the process of internal control of settlement operations.

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Section: Debts Of the Organization To Employees On Remuneration Of Labormentioning

confidence: 99%

Internal control of transactions operation in the sustainable management system of organizations

et al. 2021

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“…The research variables used in this study are generally used by many researchers in financial distress prediction related research [3,5,8,11,[13][14][15]17,20,22,24,[34][35][36] and practice. Variables are defined as follows:…”

Section: Variable Source and Variable Definitionmentioning

confidence: 99%

Financial Distress Prediction Using Hybrid Machine Learning Techniques

Chen

Shen

2020

AJEBA

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The purpose of this study is to establish an effective financial distress prediction model by applying hybrid machine learning techniques. The sample set is 262 financially distressed companies and 786 non-financially distressed companies, listed on the Taiwan Stock Exchange between 2012 and 2018. This study deploys multiple machine learning techniques. The first step is to screen out important variables with stepwise regression (SR) and the least absolute shrinkage and selection operator (LASSO), followed by the construction of prediction models, as based on classification and regression trees (CART) and random forests (RF). Both financial variables and non-financial variables are incorporated. This study finds that the financial distress prediction model built with CART and variables screened by LASSO has the highest accuracy of 89.74%.

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“…Artikel ini meneliti bagaimana financial distress memengaruhi pilihan metode manajemen laba yang akan digunakan dan bagaimana kualitas internal control memoderasi hubungan tersebut. Hasil penelitian tersebut menunjukkan bahwa ketika perusahaan mengalami financial distress, perusahaan cenderung lebih melakukan manajemen laba akrual daripada manajemen laba riil dan internal control mampu memberikan efek moderasi hubungan antara financial distress dan manajemen laba dengan menahan atau mengurangi kecenderungan manajemen laba baik akrual maupun riil (Li, et al, 2020).…”

Section: Tahun Publikasiunclassified

Perkembangan 20 Tahun Penelitian Manajemen Laba

Perwitasari¹,

Wandira²,

Nurrahmawati³

2020

JAI

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This study assessed the development of research publications on earnings management. The main aim of this study is to orient researches in creating a theoretical framework and to guide researchers who are new in earnings management research so that they know which journals and authors can be used as references when studying this phenomenon. This study uses several bibliometric indicators. All research publications related to the earnings management in the Scopus database are analysed. The authorship, number of citations, year of publication, source of articles and the publisher, institutions and countries, document types and categories, language, and author keywords are identified. The results of these analyses showed that research on earnings management is still considered an interesting and relevant issue to be studied.

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Financial distress, internal control, and earnings management: Evidence from China

Cited by 110 publications

References 53 publications

Internal control of transactions operation in the sustainable management system of organizations

Internal control of transactions operation in the sustainable management system of organizations

Financial Distress Prediction Using Hybrid Machine Learning Techniques

Perkembangan 20 Tahun Penelitian Manajemen Laba

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