Research On The Influence Of Institutional Investors On Real Earnings Management

Earnings management has always been the focus of relevant scholars' research on the corporate governance role of institutional investors.Domestic and foreign scholars have carried out many research cases both in the theoretical and practical fields.The management of listed companies through various means to carry out earnings management undermines the authenticity and effectiveness of public accounting information,making publicly available information unable to reflect the company's production and operations,harming the legitimate rights and interests of stakeholders,and also operating the capital market.The order caused a great deal of interference.Institutional investors,as major players in the capital market,have been vigorously developed in recent years under the support of the state.At the same time,professional characteristics of institutional investors and the advantages of having information and financial advantages can often well find the behavior of earnings management of listed companies and improve corporate governance.In addition,this group also has a good role in balancing information asymmetry and solving principal-agent problems.Most of the SME boards are private enterprises.Some of them have evolved from family businesses.Internal controls are not perfect.The status of information disclosure and financial manipulation issues are prominent.How much institutional investors can play in this role is worth topic of studying.When analyzing the degree of earnings management of institutional investors and listed companies,the earlier studies focused on accrued earnings management.At present,with stricter supervision,the measures adopted are more subtle and turn to actual activities.To manipulate the surplus,it is more difficult to identify.Therefore,in recent years many scholars have turned to the real earnings management and the relationship between the two.This article selected 2012-2016 SME listed companies as the researchobject,analyzed the different impacts of institutional investors on real earnings management from the perspective of the overall institutional investors and the different classifications of institutional investors and adjusted the timing of institutional investors to do Robustness test.The empirical results show that the proportion of total institutional investors holding shares has a deterrent effect on real earnings management behavior.Institutional investors' shareholdings can reduce the real earnings management of small enterprises to a certain extent;the higher the shareholding ratio of pressure-rejected institutional investors,the more The lower the level of real earnings management,there is no clear correlation between the proportion of pressure-sensitive institutional investors and the earnings management of enterprises;the stable institutional investors have a negative correlation with the level of real earnings management of listed companies,and stable institutions.The higher the proportion of investors holding shares,the lower the level of real earnings management of listed companies.