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Empirical Study On The Impact Of Institutional Investor Research Activities On Earnings Management Behavior Of Listed Companies

Posted on:2020-05-23Degree:MasterType:Thesis
Country:ChinaCandidate:C ZhouFull Text:PDF
GTID:2439330575955510Subject:Finance
Abstract/Summary:PDF Full Text Request
How to improve the efficiency of the capital market and reduce the degree of information asymmetry inside and outside the company is the focus of attention of regulators and investors in various countries.Therefore,the national regulatory authorities gradually improve the company’s internal and external information disclosure system and improve the company’s information disclosure level to achieve this goal.The development of China’s stock market is relatively short,and the system construction cannot keep up with the market scale.The main participants in the market are retail investors.Because of the large number of noise investors in retail investors,it is extremely serious to listen to news to buy stocks and chase and sell.This feature determines the significant gap between the internal and external information asymmetry of listed companies,and there is also a large gap in the access of different types of investors.With the gradual development of China’s capital time,various external information disclosure systems have been introduced.Among them,the "Information Disclosure Memorandum No.41-Investor Relations Management and Information Disclosure" issued by the Shenzhen Stock Exchange in 2013 provides detailed regulations for institutional investors to investigate information disclosure.It requires the Shenzhen Stock Exchange listed companies to conduct research and performance.During the two trading days after the completion of the investor’s activities,the “Investor Relations Report” will be prepared for disclosure to the public.The content includes the type of activity,the name of the participating unit and the participants,the questions raised by the company,and the company’s specific response.In 2012,the “Schedule of Memorandum on Daily Information Disclosure of Listed Companies – Note on Fair Information Disclosure of Listed Companies” issued by the Shanghai Stock Exchange stipulates that institutional investors shall report to the Exchange within two trading days after investigation and listing on the Shanghai Stock Exchange.Companies can voluntarily disclose investor relations reports.The regulations of the Shanghai Stock Exchange and the Shenzhen Stock Exchange enable the information of listed companies to be collected by other participants in the capital market in a timely manner,which not only reduces the degree of information asymmetry between investors,but also reduces the degree of information asymmetry between listed companies.In recent years,investor research has shown an increasing trend.In 2017,A-share listed companies received 86,534 visits from various investors,and investors’ desire to research listed companies was very strong.If institutional investor research is a way of participating in corporate governance,how can it be affected? If institutional investor research can reduce the degree of internal and external information asymmetry,will it affect the company’s earnings quality? From the perspective of agency costs,can institutional investor research effectively curb state-owned enterprise earnings management behavior? What kind of earnings management behavior will an institutional investor survey have? For upward earnings management? Or down earnings management?This paper studies the relationship between institutional investor research and corporate earnings management behavior.The research conclusions have theoretical and practical significance for institutional investors,internal and external information disclosure systems,and the role of institutional investors in corporate governance.This paper collects the data of listed companies from 2015 to 2017,and uses the modified Jones model to calculate the maneuverable accruals,and conducts regression analysis with the number of institutional surveys and the number of institutional researchers.The empirical results show that: First,institutional investor research can inhibit corporate earnings management behavior,especially in non-state-owned enterprises.Second,institutional investor research can significantly inhibit the company’s upward earnings management behavior.Therefore,institutional investor research has a positive impact on improving the company’s earnings quality.This article is divided into seven chapters,each of which reads as follows:The first chapter is an introduction.This chapter is the framework of this paper: This chapter mainly expounds the research background and significance of the paper,introduces the research ideas and research methods in detail,and finally the main contributions and deficiencies.The second chapter is a literature review,which elaborates on the literature review of earnings management,elaborates the history and evolution of earnings management research,and sorts out the motivations and methods of earnings management behavior.In corporate governance,the relationship between corporate governance and earnings management is explained.A literature review between institutional investors and earnings management clarifies that institutional investors suppress corporate earnings management by participating in corporate governance.Finally,a review of relevant literature on institutional investor research.The third chapter is the status quo and analysis of investor research.This paper collects the data of listed companies from 2015 to 2017,analyzes the content and scale of investor research in detail,and clarifies the importance that different investors attach to the research of listed companies.The fourth chapter is theoretical analysis.This paper takes information asymmetry theory,effective market theory,behavioral finance theory and principal-agent theory as the starting point,and explains the path and method of institutional investors’ participation in corporate governance,and clarifies the influence of institutional investors through information channels and corporate governance channels.The behavior of corporate earnings management.The fifth chapter is research design.First introduced the data source of this article,collected company data from 2015 to 2017 from the choice database,and processed the collected data accordingly.Furthermore,the derivation and use of the modified JONES model are introduced,and the maneuverability accrual profit is calculated using the model.At the same time,the chapter also introduces the empirical analysis method of this paper,using STATA statistical software and using least squares regression analysis to test the relationship between earnings management and institutional investor research.The sixth chapter is empirical analysis.In this paper,the least squares method is used to explain the explanatory variables and the explained variables,and the control variables are added for regression analysis.According to the empirical results,the hypothesis is basically verified: First,institutional investor research has a strong inhibitory effect on earnings management,and this role is particularly prominent at the level of state-owned enterprises.Second,institutional investor research has a significant inhibitory effect on listed companies’ upward earnings management,but has no effect on down earnings management.The empirical results show that institutional investor research can effectively curb the company’s earnings management level,and is particularly prominent in the upward earnings management.The seventh chapter is the conclusion.The conclusion of the study is the last chapter of this article.The chapter discusses and summarizes the research recommendations,research limitations,and research conclusions of the full text.
Keywords/Search Tags:earnings management, institutional investor research, corporate governance
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