The Study On The Impact Of Macroeconomic Fluctuations And Competitiveness On Earnings Management

Earnings management is the opportunistic behavior of the managers to maximize the personal interests.The earnings report reflects the level of management expectations of earnings as much as possible in the external information disclosure,resulting in accounting information distortion.The external macro environment includes the economic cycle and the external competitive environment.At present,the researches on earnings management mainly focus on the relationship between internal governance mechanism and earnings management,but there are few researches on whether the external competitive environment and economic cycle affect the earnings management.This paper will study on the effect of economic cycle and external competitive environment on earnings quality,so as to perfect and enrich the existing research results and enrich theoretical research on earnings management.Macroeconomic is composed of industry economy,showing the corresponding laws at the industry level the industry level under the background of macroeconomic from boom to recession.Industry level macroeconomic response is reflected in the profitability,liabilities and development capacity of enterprises.In different economic cycles,with the change of business environment and supply-demand relationship,managers face different pressures,and thus there will be various degrees of earnings management motivation.Company competitiveness plays an important role in the company's earnings management strategy.It can be used to examine the external competitive environment.The intensity of competition measures the competition degree of the industry and the competitive position.In the face of different levels of competitive pressure,enterprises have different buffering and resilience,so the motivation of earnings management is also affected by varying degrees of influence.On the basis of combing domestic and foreign literature,this paper analyzes the impact of macroeconomic cycle and external competitiveness on earnings management.Dividing China's macroeconomic cycle in different stages uses GDP growth rate.Using RENT and HHI to measure the competitiveness of enterprises in the industry and the degree of competition in which the industry,with the revised Jones model to calculate the earnings management.Using the data of manufacturing enterprises listed in A-share market and industry-wide to test the influence.The study finds: The macroeconomic cycle has a significant effect on earnings management,and the degree of earnings management is significantly larger in the systolic period than in the expansion period;The competitiveness of enterprises has a significant effect on earnings management,and the greater the competitive advantage in the industry,the smaller the degree of earnings management is.The competitiveness of the industry will have a significant impact on earnings management,and the smaller the industry competition,the less the degree of corporate earnings management is.