Research on the Effectiveness of Financial Supervision of the Supervisory Board

Wang Lu

Abstract

To strengthen system innovation and capacity building of the Supervisory Board, and to promote the modernization of corporate governance, based on the samples of listed companies from 2007 to 2012 in china, through the establishment of the modified Jones model to calculate discretionary accruals and adopted its absolute value as a substitution variable for earnings management, this paper studied the problem of financial supervision effectiveness of the Board of Supervisors. The results show that the age and degree of supervisors are negative related to the company's earnings management while the banking background has a positive correlation. The research did not find their sex or financial background has a significant influence on the earnings management of listed companies. The conclusions show the professionalism of supervisors is limited to exert, but the Supervisory Board still plays an irreplaceable role in corporate governance.

References

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Paper Citation


in Harvard Style

Lu W. (2015). Research on the Effectiveness of Financial Supervision of the Supervisory Board . In Proceedings of the Information Science and Management Engineering III - Volume 1: ISME, ISBN 978-989-758-163-2, pages 422-426. DOI: 10.5220/0006027704220426


in Bibtex Style

@conference{isme15,
author={Wang Lu},
title={Research on the Effectiveness of Financial Supervision of the Supervisory Board},
booktitle={Proceedings of the Information Science and Management Engineering III - Volume 1: ISME,},
year={2015},
pages={422-426},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006027704220426},
isbn={978-989-758-163-2},
}


in EndNote Style

TY - CONF
JO - Proceedings of the Information Science and Management Engineering III - Volume 1: ISME,
TI - Research on the Effectiveness of Financial Supervision of the Supervisory Board
SN - 978-989-758-163-2
AU - Lu W.
PY - 2015
SP - 422
EP - 426
DO - 10.5220/0006027704220426