Monetary Policy,Financial Constrain & Earnings Management

As the main macroeconomic regulation and control means,monetary policy realizes the transmission effect on micro-enterprises through credit channels,currency channels and asset price channels.When monetary policy drives the macroeconomic environment to change,it will change the credit behavior between enterprises and banks,affect the economic expectations of business managers,and adjust their financial strategies and accounting policies to cope with changes in the economic environment and the impact of monetary policy.During the period of monetary policy tightening,banks pay more attention to accounting earnings than policy easing.Therefore,based on earnings management,contract motive,capital market motive and political cost motive,when the degree of financing constraints of enterprises rises,their earnings management opportunities will be strengthened.At present,scholars have not studied the interaction mechanism between macroeconomics and micro-enterprise behaviors,and studied the mechanism of monetary policy on earnings management based on the monetary policy transmission path.This paper studies the combination of monetary policy,financing constraints and earnings management,and distinguishes between real earnings management and accrued earnings management behavior,and constructs the transmission path of macro-monetary policy to micro-enterprise earnings management behavior,it can make the research between macroeconomic policy and social economic output more full,and help policy makers and stakeholders understand the motivation and behavioral characteristics of corporate management's earnings management.Based on combing and summarizing domestic and foreign research results on monetary policy,financing constraints and earnings management,this paper mainly studies the impact of monetary policy tightness on corporate earnings management behavior,and whether there is a significant mediating effect between financing constraints as intermediary variables.Based on the data of China's A-share listed companies from 2004 to 2016,this paper uses earnings management as the explanatory variable,monetary policy as the explanatory variable,and financing constraint as the mediator variable,the empirical test examines the impact of monetary policy on corporate earnings management behavior and the mediating effect of financing constraints between monetary policy and earnings management.It is found that the degree of tightening of monetary policy is inversely proportional to the level of accrued earnings management and is proportional to the level of real earnings management.In the environment of financing constraints,in order to meet the credit conditions,enterprises tend to conceal real earnings management rather than accumulative earnings management with little operational space.The mediating effect test proves that some mediating effects of financing constraints are established,that is,the impact of monetary policy on earnings management has both direct effects and indirect effects through financing constraints.When monetary policy tends to tighten,companies are strengthened by financing constraints,and accrued earnings management is suppressed,but real earnings management levels will rise alternately.The theoretical significance of this paper is to construct a complete logical chain between monetary policy,financing constraints and earnings management,and reveal the impact of monetary policy on earnings management,which is the mediating effect of financing constraints on the role of monetary policy in earnings management.At the same time,this paper studies the role of monetary policy in macroeconomic policy on corporate earnings management from the perspective of external non-institutional factors,and pays attention to the alternative relationship between accrued earnings management and real earnings management,which is a useful supplement to earnings management research.The practical significance of this paper is to help creditors and other fund providers understand the motivation and behavior characteristics of the management of earnings management,and remind them to pay attention to the real earnings management behaviors to protect their own interests.For monetary policy makers in policy It provides a theoretical basis for predicting the behavioral response of micro-enterprises in the process of formulation and implementation.And it helps market regulators to identify opportunistic behaviors of financing companies and curb unhealthy trends in financial markets.