Research On The Impact Of Executive Audit Background On Earnings Management

Earnings management behavior exists widely in enterprises,so it has become a hot area that scholars are willing to study in recent years.Top echelon theory holds that managers' personal characteristics will influence their decision-making.Nowadays,it is not uncommon to change from "job-hopping" in accounting firms to being senior managers in companies.On the one hand,their special work experience helps them gain professional experience and skills,and their grasp of accounting-related policies should be more accurate and complete.Prudent working attitude and auditing profession also endow them with certain characteristics,which can restrain senior managers from making decisions on earnings manipulation.On the other hand,if the auditor changes his job and has some internal connection with his former employer,whether this special connection will play a role in the decision-making of senior managers is worth further discussion.In addition,the predecessors of Listed Companies in China are mostly state-owned enterprises,which are quite different from foreign countries,so that many studies will produce different phenomena in state-owned enterprises and non-state-owned enterprises.In order to study the influence of executive audit background on earnings management and whether there are differences between state-owned enterprises and non-state-owned enterprises,this paper uses normative research method,empirical research method and comparative research on the basis of "information asymmetry" between managers and investors,which is the root cause of earnings manipulation,combined with "high-level echelon theory","social identity theory" and "property rights theory".The research method is related to research.This paper takes the A-shares of Shenzhen Stock Exchange and Shanghai Stock Exchange listed companies from 2008 to 2017 as samples,adopts descriptive statistical analysis,multiple regression analysis and robustness test to test,and considers the particularity of China's market,divides them into state-owned enterprises and non-state-owned enterprises according to the nature of property rights.Finally,the following conclusions are drawn: firstly,in the whole sample study,we find that there is a significant positive correlation between the experience of senior auditors and accrual and real earnings management;secondly,in the grouping experiment,we find that the relationship between the experience of senior auditors and accrued earnings management is not significantly different from the nature of property rights;secondly,in the relationship between the experience of auditors and real earnings management,non-state-owned enterprises will be more than state-owned enterprises.There are more real earnings management in enterprises.Secondly,there is a significant positive correlation between the association of executive firms and the total sample accrued earnings management,but not with the real earnings management,and the accrued earnings management of non-state-owned enterprises is significantly higher than the accrued earnings management of state-owned enterprises.The main contribution of this paper is to expand the application of the theoretical basis in the field of accounting-related research,to study the impact of earnings management from the perspective of the audit background of senior managers,a special heterogeneous professional background,and to expand the influencing factors of earnings management,and to consider the impact of the audit background of senior managers on Earnings Management under different property rights.In addition,it can provide some reference for the follow-up study of earnings management.