Research On The Impact Of Real Estate Company's Debt Financing On Earnings Management

The real estate industry is a capital-intensive enterprise.A large amount of funds are needed in the process of operation and development,so there is a large demand for external debt financing.Before the general creditor lends money to the real estate company,it will check the financial information of the company as a basis of judging whether to give the loan.Therefore,the debt financing of real estate listed companies may induce companies to do earnings management.As one of the macro-control measures,monetary policy is closely related to the real estate industry.Now there are literature studies on the impact of monetary policy on real estate prices,real estate market,and real estate company investment.This thesis mainly discusses the relevance of corporate debt financing,earnings management and the regulatory effect of monetary policy on these relationships.At the same time,this thesis puts the accrued earnings management and real earnings management in the analysis framework,and discusses the impact of debt financing on the two types of earnings management in real estate listed companies.This thesis takes a sample of real estate industry listed companies in Shanghai and Shenzhen Stock Exchange from 2008 to 2016,a total of 819 samples.The regression results show that the longer the debt financing term,the real estate companies' accruals and true earnings management will be significantly enhanced.The larger the scale of the loan,the significantly higher the level of the company's accrued earnings management and real earnings management.In the period of tightening monetary policy,there is a more obvious reinforcing effect on the positive correlation between debt maturity,scale of the loan and the two types of earnings management.At the same time,compared with accrued earnings management,the role of debt maturity and real earnings management has become more pronounced.Similarly,for the tightening of monetary policy,the positive correlation between borrowing size and real earnings management is even more pronounced.