Internal Control Deficiency Type and Real Earnings Management-Based on the Perspective of Financial Distress

This paper uses data of A-share listed companies of China from 2009 to 2015 to analyze the impact of internal control deficiency type on real earnings management based on the perspective of financial distress. It finds that the more serious internal control deficiency is, the greater the real earnings management is. Financial distress will aggravate the impact of internal control deficiency type on real earnings management. The contribution of this paper is to provide investors with useful information and further extend the research in this area.