The Financialization Of Non-financial Enterprises And Real Earnings Management

In recent years,China's economic financialization has been increasingly strengthened.In the context of a transitional economic system,China's finance and real estate industry is considered to be the most profitable industries due to industry monopoly,interest rate control and rapid rise in housing prices(Wang Hongjian;2016).While commodity prices continue to be sluggish.What's more,the return on entity investment?labor productivity growth,and total factor productivity are all declining,especially in the basic industries such as manufacturing and heavy industry.Therefore,in the context of the existence of excess returns,more and more entities are keen to invest in virtual economy such as finance and real estate.Based on the background,I studies the influence mechanism of the financialization of non-financial enterprises and real earnings management behavior:based on the mediating effects of current core performance.I takes China's A-shares without financial and real estate industries from 2013 to 2017 as the research sample.I find that that the current core performance is part of the mediation factor of the financialization of non-financial enterprises and real earnings management.The financialization of non-financial enterprises play a negative and significant role in current core performance,enhancing the motivation that the manager enact real earnings management.In addition,the further study of this paper finds that the higher degree of financing constraints,the more institutional investors and state-owned enterprises,the stronger positive correlation effect of the financialization of non-financial enterprises and real earnings management.The article makes an incremental contribution to the study of financialization from a micro perspective,which helps to provide appropriate reference for the protection of the interests of small and medium shareholders in the context of financialization.