Institutional Investors Ownership And Earnings Management In Listed Companies

Earnings information is the important financial information for investors to make investment decisions,earnings management seriously affects the quality of earnings information,reduces the usefulness of accounting information and damages the interests of investors.At the same time,surplus management is also the main obstacle of the effective operation of capital market and effective allocation of social resources.Therefore,how to inhibit the earnings management of listed companies is an urgent problem to be solved in both theory and practice.Previous scholars' research believed that institutional investors as an important external governance mechanism of listed companies,the way of participating in corporate governance has been from the past negative" voting by foot ",gradually turning into positive" voting by hand ".The emergence of institutional investors has injected new vitality into the capital market.they can strengthen the supervision of the management of the company,thereby inhibiting the earnings management of listed companies.The main viewpoint of existing research is that institutional investors have the advantage of fund,information and expertise,which can participate in corporate governance,and have an impact on earnings management.This paper argues that information asymmetry is an important prerequisite of earnings management.The influence of institutional investors on earnings management needs to explore how institutional investors reduce the degree of information asymmetry,thus to inhibit the earnings management of listed companies.The emergence of investor relationship management(IRM)provides the starting point for the above research.The so-called investor relations management refers to a strategic marketing activity by the listed companies using the theory of marketing,finance,public relations,and the core content is to promote the information exchange between listed companies and investors,the ultimate goal is to obtain competitive capital and realize the value maximization of the company.So does the mechanism of the institutional investors of listed companies depend on investor relations management?In this paper,the A-Share listed companies in Shanghai securities market in2013-2015 as the research object,by building investor relations management index to measure the level of investor relationship management,and through the stepwise analysis and Sobel method test the mediating effect between institutional investors and earnings management.First,the relationship between institutional investors and earnings management is discussed.the higher the proportion of institutional investors is,the lower the earnings management level of listed companies is.Secondly,the relationship between institutional investor shareholding and IRM is analyzed,and the positive correlation between institutional investor shareholding and IRM is found.Finally,this paper constructs the regression model of institutional investors,IRM and earnings management,and finds that investor relationship management plays a part of intermediary role between institutional investors and earnings management.According to the results,the following recommendations:to improve the legal regulations for investor protection;Further promoting the development of investor relations management;Give full play to the active governance role of institutional investors.