Research On Uncertainty Of Economic Policy And Corporate Earnings Management Decision-making

The influencing factors of earnings management have always been the focus of scholars.The reason why enterprises conduct earnings management and the degree of earnings management have always been one of the important strategies for enterprises in the operation process.Earnings management can be divided into accrual earnings management and real earnings management.By combing through previous studies,this paper finds that the influencing factors of earnings management are mainly divided into six aspects:corporate operating characteristics,financial reporting practices,auditors,corporate governance,capital market pressure and external environment.According to the current situation of the earnings management level of Chinese enterprises,the study shows that the earnings management level of Chinese enterprises has obvious regional characteristics,which is due to the imbalance of China’s regional development.In recent years,researches on the uncertainty of economic policies have emerged,which mainly focus on the macro level,while researches on the micro decision-making of enterprises mainly focus on the capital structure,investment,and holding only.By combining the signal transmission theory,principal-agent theory and opportunism theory,this paper constructs the influence mechanism between economic policy uncertainty and enterprise earnings management,and discusses the influence of economic policy uncertainty on specific earnings management tools.The influence of auditor and equity agency cost on the relationship is further studied.This paper examines the relationship between economic policy uncertainty and corporate earnings management by using cluster robust individual fixed effects model regression analysis.In order to solve the problem,on the one hand,macro variables such as economic policy uncertainty affect the real earnings management of enterprises through salary pressure,capital market stock price and debt financing pressure,and may also play a role through other channels.Therefore,macro variables may be related to random error terms.On the other hand,some firm characteristics that do not change over time may be related to explanatory variables,and these fixed effects are included in the error term,resulting in endogenous problems and robustness test.In this paper,the us economic policy uncertainty(US_EPU)is used as the instrumental variable,and the clustering robust GMM2S model is used for regression.According to the empirical test results of this paper,it verifies the impact path of economic policy uncertainty on earnings management of enterprises,as well as the impact on different earnings management tools,examines the impact of auditor and equity agency cost on the two,and puts forward relevant policy Suggestions with certain practical and theoretical significance.