Study On The Influence Of Marketing Expenses On Enterprise Performance In The Real Earnings Management Perspective

Enterprise investment in marketing expenses can improve the marketing effect, improve product well-knownness, promote the customers to purchase, which can greatly improve enterprise image, but it is a "double-edged sword", while marketing expenses can bring future benefit for the enterprise, but it will be "compression" enterprise current profit space, enterprise managers will trade off "double effect" of the investment in marketing expenses. At the same time, due to the management have independent discretion to marketing expenses which have regulating functions to profit, in this premise, the management has the motives of earnings management to marketing expenses. Therefore, this paper studies the reasonable scope of enterprise investing to marketing expenses, and then further to study the influence of management’s earnings management on the marketing expenses to enterprise future performance from the perspective of earnings management.First, this paper studies the relationship between investment level of marketing expenses and the corporate performance. This paper put forward research hypothesis:investment level of marketing expenses present respectively inverted "U" shaped relationship with enterprise future operating performance and the future value, with operating margin, Tobin’sQ as the dependent variable, investment level of marketing expenses as independent variable, the study found that the enterprise investment in marketing expenses should be kept within a reasonable range, inadequate or excessive investment will reduce the enterprise performance in the future.Then, based on the perspective of earnings management, this paper further to study the influence of management’s earnings management on the marketing expenses to enterprise future performance. This paper put forward research hypothesis:earnings management on the marketing expenses can reduce enterprise future operating performance,the future value and future operating performance quality,with operating margin, Tobin’sQ value and sales received cash ratio as the dependent variable, abnormal marketing expenses as independent variables, the study found that earnings management on the marketing expenses will damage the enterprise future profitability and earnings quality, has serious economic consequences.In this paper, the main work and contributions are as follows:First, this paper put forward and verified investment level of marketing expenses present respectively inverted "U" shaped relationship with enterprise future operating performance and the future value. The empirical results show that the enterprises’s devotion to marketing expenses should be kept in a reasonable range, excessive or inadequate inputs are negative effects on the future performance and value.Second, the paper put forward and verified earnings management on the marketing expenses will reduce the enterprise performance in the future. This paper selected "positive earnings management sample" (inadequate samples) and the "negative earnings management sample" (excess input samples), depict the different direction marketing expenses earnings management behavior. The empirical results show that both positive earnings management and negative earnings management will reduce the enterprise operating performance and value in the future.Third, this article inspects the influence of earnings management on the marketing expenses on the quality of the business income from the perspective of cash flow. Using the index of sales received cash ratio to measure the company sales recovery cash situation and quality of the company sales. The empirical results show that earnings management on the marketing expenses behavior will reduce the quality of enterprise future performance.