The Research On Real Earnings Management Under The Influence Of Analyst Coverage And Analysts' Personal Characteristic

With the continuous improvement of China's accounting standards and audit supervision,the management of the company has reduced the management of accrued earnings,and then turned to the real earnings management with strong concealment.Real earnings management will change the normal business activities of the company and affect the cash flow of the company.It will not only distort the financial information of the company,but also easily damage the long-term value of the company.As an information interpreter and external supervisor of the capital market,whether the analyst can influence the real earnings management of the enterprise is a question of value exploration.At present,there are few studies in this field,and no consistent conclusions have been reached.On the other hand,the personal characteristics of analysts will greatly affect the performance of their information interpretation and supervision functions.Therefore,this paper intends to investigate whether securities analysts can focus on the suppression of real earnings management and whether the analyst's personal characteristics can influence the relationship between analysts' coverage and real earnings management.Based on the theory of information asymmetry,signal transmission theory and high-level echelon theory,this paper analyzes the special functions of securities analysts in the capital market,and believes that securities analysts must pay attention to the profitability and value of enterprises because of their investment advisory functions.Changes,so will pay more attention to the negative impact of real earnings management,which is more likely to affect real earnings management.This paper selects the 2007-2017 data of Chinese A-share listed companies as a research sample,and studies the relationship between analysts' personal characteristics,analysts' concerns and real earnings management.The research results show that:(1)The increase of analysts' attention has increased the disclosure of information,the interpretation is more detailed and accurate,and the external supervision of the company has been strengthened,thus inhibiting the real earnings management level of enterprises.(2)The personal characteristics of the analyst play a regulatory role between the two.Analysts with professional expertise,rich working experience and high educational background have higher industry sensitivity,professional judgment and learning and analysis ability,which strengthen the restraining effect of analysts' attention on real earnings management.The conclusions of this paper show that securities analysts can exert external supervision effects on real earnings management behaviors of enterprises,while analysts with industry expertise,high education and more work experience have higher industry sensitivity and professional judgment.As well as learning and analysis skills,it can inhibit the real earnings management.The research in this paper expands the literature on the impact of analysts on earnings management,enhances the understanding of analysts on the mechanism of corporate earnings management,and provides a decision-making reference for improving the supervision and guidance of China's analyst industry and improving the company's information quality.