Reasearch About The Effect Of Real Activities Manipulation On Supply-chain Relationship Specific Investment

For listed companies,their financial data can be used as a signal to transmit information on the capital market and affect the investment decision of the company's financial stakeholders,such as small and medium shareholders.Executives of listed companies have strong capital market motives and opportunistic motives for earnings management to modify financial data to attract more financial stakeholders ' investments.In producer markets,the investment of upstream and downstream enterprises in their mutual relationship is called supply-chain relationship specific investment.For the upstream and downstream enterprises,will the transfer of financial data in the producer market also affect their specific investment in supply chain relationship with the center enterprise? Are executives of listed companies also using earnings management to modify financial data to attract more specific investment in supply chain relationships? If the financial data can affect the investment decision of the enterprises in the producer market,the earnings management behavior should be paid extra attention in the supply chain management,and the enterprises should take measures to deal with the specific investment of the supply chain relationship.Based on information asymmetry theory,principal-agent theory and signal theory,this paper mainly studies the effect of the real activities manipulation behavior of the Center enterprise on the supply-chain relationship specific investment and explores its specific impact path to suppliers and customers from three aspects of real activities manipulation(sales manipulation,production manipulation and discretionary cost manipulation).At the same time,this paper will take the accrual management as the control variable to study the problem more comprehensively.Based on transaction cost theory,this paper argues that China's institutional environment plays a negative role in regulating the relationship between the two.This paper collects a total of 7,636 samples from the 2007-2015 A-share listed company and finds that the real activities manipulation has positive influence on the specific investment of supply chain relationship through the multiple regression analysis of short panel.For the three aspects of real activities manipulation,sales manipulation only has a significant positive impact on the client's specific investment,and the reduction of discretionary costs has a significant positive impact on the specific investment of the supplier,while the over production has a significant positive impact on the relationship specific investment of suppliers and customers.After introducing the institutional environment,the main effects are weakened significantly,indicating that the institutional environment plays a negative role in the relationship between the two.The conclusion of this study can not only alert the investment decision of upstream and downstream enterprises,but also provide reference for them to be careful about the abnormal behavior of the center enterprises in the process of specific investment of supply chain.In addition,this research enriches the cross research of accounting earnings management and supply chain management theoretically.