Impact Of Stock Price Crash Risk On Real Earnings Management

Chinese capital market is gradually maturing,but during the development process,financial fraud and fraud occur frequently.Under the circumstance that the risk of the stock price collapse is high,listed companies will construct real transactions for real earnings management and manipulation.They will send a signal to the capital market that the company is doing well.It is unclear what role auditors play.Most of the current studies are about the impact of real earnings management on the risk of the stock price crash but have not explored whether listed companies will still perform earnings management when the risk of stock price crash is high.Governance is of some significance.Based on this,this paper takes 2003-2018 China's Shanghai and Shenzhen A-share non-financial non-ST listed companies as a sample to examine the impact of stock market crash risk on real earnings management.At the same time,it further examines audit costs and the accounting firm industry from an audit perspective.The role that expertise plays in it.This paper uses STATA statistical software and adopts multiple regression analysis methods.Through empirical analysis,the following conclusions are obtained:(1)The higher the risk of the stock market crash,the higher the degree of real earnings management of listed companies in the next period,and the risk of stock market crash corresponding to earnings management is no significant impact.(2)The audit fee enhances the positive effect of the stock price crash risk on real earnings management behaviour.(3)The accounting firm's industry expertise and non-standard audit audit opinion will reverse adjust the positive relationship between the stock price crash risk and the exact earnings management level,But the regulating effect is not significant.The main contributions of this article are: first,theoretical analysis and empirical examination of the positiveimpact of stock price crash risk on real earnings management;second,the introduction of auditing behavior and distinguishing the impact of stock price crash risk on real earnings management under different types of auditing,It is found that non-standard audit opinions and firm industry expertise can weaken the impact of stock price crash risk on real earnings management,but the auditor's oversight role is not fully utilized.Based on this,this article enriches the literature on the economic consequences of stock price crash risk from the perspective of audit behavior,and enriches the research on the governance effect of audit behavior on real earnings management behavior.