On the theoretical basis of new institution economy, this article probes into impact of the differences in the institutional arrangements upon value creation of the internal capital market with focus on the specific manifestations of institutional factors, i.e. the existential effects of the earnings management behavior. The result of this research shows that the value creation of internal capital market is significantly positive to the size of Supervisory Committee, managerial ownership and salary, and interest cover, but negative to managerial consistency in decision-making. The presence of ...
