Research On Supply Chain Relational Transaction And Earnings Management

At present,the regulatory system and related legal provisions of China's capital market have yet to be improved.Enterprises have promoted the emergence of supply chain relationship transactions in order to reduce operational risks and stabilize long-term cooperation with suppliers and customers.This trading model can reduce transaction costs and create a continuous relationship rent,which in turn can maintain a good competitive edge.However,if companies want to maintain this relationship,they must communicate to the trading partners that the business is in good shape and the future is bright.Therefore,the management of the company is likely to control the corporate surplus to achieve this goal,and then get more investment.However,this kind of move by management to control the surplus will enhance the business risk of the company and infringe the interests of shareholders.As one of the important external investors,institutional investors have the motivation and ability to participate in the daily business activities of the company,and actively exercise their voting rights to participate in internal corporate governance,play the role of external corporate governance,and thus influence The company's development direction and the management's possible earnings management behavior,so this article will select the institutional investor shareholding variable into the supply chain relationship transaction and earnings management research to analyze its governance role.This paper analyzes the relationship between supply chain relational transaction and earnings management and the governance role of institutional investors' shareholding in theoretical analysis and empirical research.In the theoretical analysis,this paper sorts out the past literatures between domestic and foreign scholars on relational transactions,earnings management and institutional investors,and analyzes them to get the hypothesis.In terms of empirical research,this paper finds,calculates and filters the listed companies in Shanghai and Shenzhen A-shares from 2008 to2017 as a research sample(non-financial industry).The sum of the previous five major suppliers and customers is the supplier-type transaction.The value of the twodimensions of the customer relationship transaction,using the modified Jones model and the collected financial data to calculate the two types of earnings management indicators,establish a regression model of the variables and use STATA14.0 for regression analysis,empirical testing and The robustness test was conducted and the results of the study were discussed.Finally,through research and analysis,two main conclusions are obtained:(1)As the proportion of supply chain-related transactions increases,the degree of earnings management of enterprises will become more serious.(2)The institutional investors' shareholding can significantly suppress the accruals and real earnings management behaviors caused by relational transactions.This result shows that the higher the proportion of institutional investors in the enterprise,the lower the degree of accrued earnings management and real earnings management.At the end of the paper,based on the research conclusions,relevant policy recommendations were made to the market supervision departments and government decision-making departments.