Earnings Management, Internal Control and Cost Stickiness: Evidence from Chinese listed High-Tech Enterprises

Author(s)

Dr. Shunhua Yang , Jiaying Ji , Siyuan Xu , Sonia Kumari ,

Download Full PDF Pages: 93-109 | Views: 128 | Downloads: 48 | DOI: 10.5281/zenodo.7550139

Volume 11 - December 2022 (12)

Abstract

The proposal of "cost reduction" task puts forward higher requirements for cost management in high-tech enterprises in China. This study aims to investigate the relationship among earnings management, internal control and cost stickiness, using the financial data of A-share listed high-tech enterprises in China from 2016 to 2020. The findings reveal a direct positive relationship among internal control, earnings management and cost stickiness, namely a high-tech company implements a high-quality internal control system, earnings management will be decreased and the cost stickiness will be lowered too.

Keywords

Earnings management, internal control, cost Stickiness, listed high-tech Enterprises

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