Research On The Correlation Between Political Association, Earnings Management And Market Capitalization Of State-owned Listed Companies

The study of "earnings management" has been a hot academic topic,this article as a key variable,"earnings management" as the bridge and hub to study political association,surplus management relationship with the market value of the three state-owned listed companies.For the first two,the domestic scholar's research focus mainly on private enterprises,there is no relevant research literature about state-owned listed companies;For the research of earnings management and market value of listed companies,there are no related domestic literature research content,so the research of this paper provides a very large space and difficulty.Based on this,the state-owned listed companies in order to obtain competitive advantage,have to establish a link between politics as an important strategy with the government.The state-owned listed companies has a market value of the financial data is easy to get,and can be intuitive response in areas such as business performance and development prospects,this decision will affect the enterprise and its stakeholders.Political association,state-owned listed companies earnings management and market value of the relationship between the three,for how the state-owned listed companies management to achieve their own long-term development,obtain a higher return on investment quality and performance gains has guiding significance and practical significance.First of all,the author from the rent-seeking,bonus plan hypothesis,information asymmetry theory,political cost hypothesis key narrative Angle,the state-owned listed companies for assuming a study political relation between earnings management and the relationship of.And then the author from the relationship between earnings management and the market value of expansion theory of narration,this paper combined with the previous theory,for the research of hypothesis 2 and 3 below provides persuasive theoretical support.Next,the author will be the five years 2011-2015,the Shanghai and Shenzhen two city A shares of state-owned listed companies as the research object,respectively for assuming that one to assume that three questions: the state-owned listed companies associated political background and earnings management,earnings management and the correlation between market value,as well as in political association under the background of state-owned listed companies,the correlation between earnings management and its value of the three aspects of theory and empirical analysis.From the top of the academia widely use of indicators to measure the political associated with or without,and by using SPSS18.0 statistical analysis software to research the problems such as regression test and analysis,finally the conclusion and hypothesis.In this paper,the most innovative research conclusion as follows: considering the political association background of state-owned listed companies,a significant negative correlation between the degree of earnings management and the market value.In previous literature,this view has never been mentioned.Conclusion from the research: first of all,our country state-owned listed companies of the political background and its associated significantly positive correlation between earnings management degree,the degree of earnings management will increase with the improvement of political association degree and,ultimately the robustness of the return of the test results also show that the initial result is stable,the political association was significantly positive correlation between earnings management and got evidence that this assumption.For hypothesis 2 after established the state-owned listed companies and market value of the associated with the degree of earnings management model and through the regression test.Last three model by assuming the empirical test of the state-owned listed companies associated political background for the degree of earnings management and the market value is between adjustment.Regression results show that under the background of political association,state-owned listed companies earnings management will bring negative effects to its market value,which can be effectively explained by theory of "rent-seeking".