An Empirical Study On The Impact Of Earnings Management On Stock Price Crash Risk

Finance is the core of the modern economy.Maintaining financial stability is the guarantee for the healthy and stable development of the national economy and the long-term stability of the society.Therefore,the research on the stock price crash risk that seriously affects financial stability has attracted the attention of scholars at home and abroad.According to the recent research,based on the principal-agent theory,information asymmetry theory and behavioral finance theory,the earnings management manipulation adopted by the company's management directly affects the stock price crash risk.However,in China's special system,is there a significant difference of two different methods of earnings management in the impact of the stock price crash risk? Is this difference still true when distinguishing between different external market situations? And in the context of China's special system,will the heterogeneity of property rights regulate the relationship between earnings management and the risk of stock price crash? This article has conducted in-depth research and given corresponding recommendations.This paper uses the empirical research method to take the 2011-2017 financial data and stock market transaction data of 1215 non-financial listed companies as a sample.The negative coefficient of skewness(Ncskew)and the upper and lower fluctuation ratio(Duvol)are used as the surrogate variables of the stock price crash risk respectively.According to the Jones correction model and the model proposed by Roychowdhury,the degree of accrued earnings management and the degree of real earnings management are measured respectively.The effect examines the impact of earnings management on stock price crash risk.The empirical results show that:(1)There is a significant positive correlation between the two types of earnings management and the stock price crash risk,and this significant relationship is particularly evident in the “bull market”;(2)Grouping sample enterprises according to different property rights.When returning,it is found that compared with state-owned enterprises,the positive correlation between the two types of earnings management methods and the stock price crash risk is more significant in non-state-owned enterprises,and the effect of accrued earnings management on the stock price crash risk of non-state-owned enterprises is more significant than real earnings management.