A Research On The Effect Of Credit Securities Trading On Earnings Management Of The Listed Company

The credit securities trading,has been implemented for 10 years in China since2010,during which the margin system developed itself from the initial small-scale range of only 90 stocks to nearly 1,000 listed companies,and the scale of margin financing and securities lending reached 900 billion yuan,indicating that the development of margin financing and securities lending business has made great progress,and China's financial market system has been improved further.In recent years,with the most important task to maintain the stable operation of the financial market,China's economic development has entered a critical period of transformation.And the margin financing,as an important symbol of mature securities market,is of great significance for maintaining financial market stability.As a result,the research on the impact of margin system has gradually increased in academia and practical circle.Meanwhile as a hotspot in academic circles,earnings management is a common means of manipulating profits in listed companies,which can lead to misleading to investors,and thus leading to serious consequences which may threaten the stability of the entire financial market.Previous studies on the impact of margin financing to earnings management have focused on the degree aspect.To be more specific,the research focus on whether the margin financing will affect the earnings management preferences and direction of listed companies or not? What impact does the Balance Mechanism of Shareholding of listed companies have on this relationship?Due to gap above,this article has carried out a further study.From the perspective of listed companies,the empirical data required for A-share market underlying stocks and others from 2008 to 2017 were collected,and through the DID,the author investigates the impact of margin financing to earnings management of listed companies.And this paper considers the internal equity balance of listed companies to test whether the external governance effect will be affected by power balance with shareholder structure.Through empirical research;this paper draws the following conclusions: First,the margin system inhibits the earnings management of A-share market underlying stocks.Second,The implementation of the margin financing system makes listed companies prefer real earnings management.Third,the short selling mechanism of margin financing contributes more attention to their financial image,doing earningsmanagement downward based on profit-smoothed.Fourth,The low-equity check and balance company's margin financing and securities lending system has a better restraining effect on earnings management.This paper provides a new perspective of some recommendations: primarily,further improving the margin system and establish a long-term mechanism;secondly,the investors should concern the underlying stocks,and regulators should improve penalty system for earnings management;Last,the listed companies should improve the governance structure actively,establishing the balance mechanism of shareholding.