The Effect Of Perks Regulation On Expense Classification Shifting Of State-owned Enterprises

As a significant perks regulation,whether the "Eight-Point Rules" can be effectively implemented is related to the health status of state-owned enterprises."Eight-Point Rules" practice strict economy and combat waste,and strictly regulate the expenditure included in management expenses,making the perks of state-owned enterprises and related accounting information the focus of government regulation and public supervision.It restrain perks of state-owned enterprises.However,previous studies have found that state-owned enterprises use expense classification shifting to avoid external supervision.whether perks regulation will induce the expense classification shifting of state-owned enterprises,and which accounting subjects are the "disaster areas" of expense classification shifting is a very important issue.Based on the data of A-share listed companies from 2009 to 2017,using the natural experiment provided by the "Eight-Point Rules",this paper empirically examines the impact of the "Eight-Point Rules" on the expense classification shifting of state-owned enterprises and the specific ways.We use the PSM-DID method,with non-state-owned enterprises as the control group and state-owned enterprises as the experimental group.Furthermore,from the perspective of external corporate governance,grouping regression is carried out according to the process of marketization,and the impact of marketization on the manip ulation of state-owned enterprises is examined.The study finds:(1)To circumvent supervision from the "Eight-Point Rules",state-owned enterprises may use accounting subjects to classify and manipulate expenses.Part of perks originally included in manage ment expenses is transferred to non-sensitive accounting subjects such as capital expenditure and disposal loss of illiquid assets.State-owned enterprises seem to reduce perks on the surface,but in essence,they probably achieve the purpose of recessive corruption through expense classification shifting.(2)Higher degree of marketization can effectively restrain expense classification shifting of the state-owned enterprises.This paper reveals a new way to deal with recessive corrupt accounts,deepening market-oriented reform has a governance role in expense classification shifting,which opens a new channel for the governance of state-owned enterprises' power rent-seeking and avoidance of supervision,and provides guidance for optimizing perks regulation.