An Empirical Study On The Influence Of Debt Financing On Earnings Management Of GEM Listed Companies

Earnings management has always been the focus of domestic and foreign accounting scholars' research.It is not conducive to the healthy development of enterprises and the steady promotion of the securities market.The Ministry of Finance has introduced a more rigorous accounting system to reduce earnings management,and the SFC has also increased the penalties for enterprises engaged in earnings management.However,earnings management of listed companies based on their own development still prevails.Debt financing is an important way for enterprises to raise funds.It has a governance role for enterprises.At the same time,debt constraints will induce enterprises to carry out earnings management.Therefore,the impact of debt financing on earnings management is uncertain.Most of the existing studies on the correlation between debt financing and earnings management are listed companies on the main board.GEM listed companies play an important role in promoting the development of small and medium-sized enterprises,promoting scientific and technological innovation,and promoting the upgrading of industrial structure.GEM listed companies have their own advantages of vigorous development and high growth,but there are also shortcomings of high operational risk and financing difficulties.Debt financing has its own characteristics: the asset-liability ratio is relatively low,the proportion of bank loans is low,and the proportion of commercial credit is high.This will affect the degree of change of debt financing on earnings management.Therefore,the existing research on the correlation of debt financing on earnings management can not be applied to GEM listed companies.It is necessary to study the correlation between debt financing and earnings management of GEM listed companies.This paper studies the impact of debt financing on earnings management of GEM listed companies,enriches the relevant theory,and plays an important role in improving the debt financing structure of GEM listed companies,reducing the occurrence of earnings management behavior,protecting the interests of creditors,promoting resource allocation,and maintaining the healthy and stable development of the company.This paper takes the debt financing and earnings management of GEM listed companies as the research object,and uses normative research method and empirical research method to test the impact of debt financing on earnings management.Firstly,this paper introduces the background and significance of the research,and expounds the research contents,methods and innovative points.Secondly,it defines the concepts of debt financing and earnings management,expounds the principal-agent theory,control theory,information asymmetry theory and debt contract theory.On this basis,it puts forward the hypothesis of debt financing on earnings management,chooses debt financing scale,duration and mode as explanatory variables,real and accrued earnings management as explanatory variables,and relevant financial indicators.Bid as a control variable,with 2430 financial data of GEM listed companies from 2013 to 2017 as samples,this paper constructs a model for empirical testing.Finally,based on the empirical results,we draw conclusions and put forward policy recommendations.The empirical results show that: first,the debt financing scale of GEM listed companies is U-shaped related to the degree of accrued earnings management.The scale of debt financing is positively correlated with the degree of real earnings management.Second,debt financing maturity is positively correlated with the degree of accrued earnings management,and negatively correlated with the degree of real earnings management.Thirdly,the proportion of bank loans changes in the same direction as the two levels of earnings management.Fourthly,there is no significant negative correlation between the proportion of bonds payable and the two earnings management levels.Fifthly,the impact of commercial credit ratio on earnings management is uncertain and relatively variable.It should be analyzed in combination with a variety of factors.Based on the research results,the following suggestions are put forward: First,optimize the capital structure and control the debt structure.Secondly,strengthen the regulatory role of the SFC and CPA to improve the authenticity of listed companies' information.Third,optimize the multi-financing structure of GEM listed companies.Fourth,strengthen the management of commercial credit.The innovation of this paper is that it is the first time to select GEM listed companies as the research object to carry out targeted research,and achieve the innovation of research perspective.In order to ensure the accuracy of the research results,the control variables are selected from different perspectives,and the modified Jones and Roychowdhury models are used to measure and analyze the two earnings management models,which enriches the research on the impact of debt financing on earnings management in the GEM field,enriches the relevant theories,and provides more targeted suggestions and references to the information users of GEM enterprises.