Empirical Research On Zombie Enterprise Earnings Management

Under the "new normal" of China's development,the traditional concept of economic development has fallen behind,and economic development requires both quantity and quality.Zombie companies have poor profitability,and they manage earnings by whitewashing financial statements,occupying a lot of social resources,which hinders the effective allocation and sustainable development of social resources.Strengthening the research on the surplus management of zombie enterprises can provide a theoretical basis for advancing the supply-side reform of China's "Capacity reduction ? De-stocking ?Deleveraging?Cost reduction? Improving underdeveloped areas" and solving the problem of zombie enterprises.This article is divided into six parts.The first part is an introduction.Firstly,the background of the topic of the paper and the significance of the research are proposed.Secondly,the research ideas and methods are clarified.Finally,the innovation of the article is introduced.The second part is the literature review.Sort out the previous research results of zombies companies,earnings management and zombies companies' earnings management at home and abroad,comment on the existing research results,and further clarify the research direction.The third part is related theories and assumptions.By analyzing the relationship between the principal-agent theory,information asymmetry theory,accounting earnings decision usefulness theory and economist theory,the relationship between the zombification of listed companies in China,the proportion of zombies' state-owned equity and earnings management is analyzed.High,the higher the degree of corporate earnings management;the higher the proportion of zombie companies' state-owned equity,the higher the degree of corporate earnings management.The fourth part is research design.This part builds the index system of corporate zombie index,and collects the data of Shanghai and Shenzhen A-share listed companies from 2011 to 2018,and analyzes the calculation data of zombie companies of different degrees and different industries.The fifth part is empirical test and result analysis.Through the zombie index index system constructed in this paper,the zombie index of each enterprise is measured,and correlation analysis,regression analysis,and robustness test are combined with hypotheses.The sixth part is the research conclusions,suggestions and prospects.According to the previous theoretical and empirical analysis,we can draw conclusions,propose solutions to problems,and finally explain the prospects of the research.This article first sorts and summarizes domestic and foreignliterature through literature analysis.Based on domestic and foreign research,it clarifies the relationship between the degree of corporate zombies,the proportion of zombies' state-owned equity and the degree of corporate earnings management.Then use the inductive deductive method to build an enterprise zombie index system;finally use an empirical analysis method to do an empirical analysis of the relationship between the zombie degree of the enterprise,the proportion of zombie enterprises' state-owned equity and earnings management,the results show that:(1)2011 to 2018 The average level of corporate zombie among Shanghai and Shenzhen A-share companies is 0.21.China's "light zombie companies" account for 86%,"moderate zombie companies" account for12%,and "severe zombie companies" account for 2%.(2)The higher the degree of corporate zombies,the higher the degree of earnings management.(3)The higher the proportion of zombies' state-owned equity,the higher the degree of earnings management.Based on the results of the study,suggestions were put forward to suppress the surplus management of zombies,suggestions to promote the reform of state-owned enterprises,and suggestions to manage zombies.The research results help investors understand financial reports in depth,make correct decisions,and realize the rational allocation of resources.It is helpful to improve the market supervision mechanism and provide a theoretical basis for the management of zombies.