Research On The Relationship Between Real Activities Earnings Management And Bullwhip Effect Moderated By Information Techonology Investment

In 2015,the “2025 made in China” points out that manufacturing is the main body of the national economy,the base of building,the tool of developing and the foundation of powering.Supply chain management is the very important content in the process of manufacturing industry development;the bullwhip effect is one of the problem that supply chain managers generally face with.Although China has become a manufacturing great power,according to the statistics,Chinese logistics cost is significantly higher than that of developed countries.Supply chain management level is relatively backward,and the bullwhip effect generally exists in industries and enterprises,which restricts the development of the manufacturing and other industries in China.Bullwhip effect is demand variation amplification phenomenon in the supply chain.When the signal transmits from supply chain low-end to high-end,the demand information is distorted,and causing amplified orders fluctuation.The current study of the bullwhip effect experiment includes theory and empirical analysis,mainly focused on exploring the reasons and results of bullwhip effect.Researches mainly focus in three levels: the supply chain,the industry and the company.The bullwhip effect under the company level research began in recent years.The main reasons are demand signal,price fluctuations,order batch,managers' behavior and system factors,etc.The result is to increase operating costs,inefficient operation management and affect the enterprise long-term development.However,while all factors of idealized enviornment are under control,the bullwhip effect cannot be completely eliminated.From managers' financial motivation,based on the principal-agent theory and signal asymmetry theory,this article brings in real activities earnings management and investigates its impact on the bullwhip effect.Based on the review of related literature at home and abroad,using Shanghai and Shenzhen A-share listed companies from 2007 to 2015 as samples,this study empirically investigates the relationship between real activities earnings management and the bullwhip effect and the moderating effect of the IT investments.The results show:(1)Real activities earnings management under the sales manipulation has positive effect on the bullwhip effect;(2)Real activities earnings management under the production manipulation has positive effect on the bullwhip effect;(3)Real activities earnings management under the expenditure manipulation has positive effect on the bullwhip effect;(4)IT investments weaken the relationship between real earnings management under sales manipulation and bullwhip effect.(5)IT investments have no effect on the relationship between earnings management under production,expenditure manipulation and bullwhip effect.Finally,by analyzing the results,this study proposes suggestions to enhance the level of IT investment and weaken bullwhip effect of listed companies.