Executive's Oversea Background?Institutional Investors And Earning Management

At present,earnings management manipulation is widely used in listed enterprises in our country.The management of listed companies use different means to harm the interests of small and medium-sized investors in our country,such as regulating company profits and whitewashing company financial statements,which has a negative impact on the quality of accounting information of Chinese enterprises,and also seriously damages the normal operation of our capital market.With the introduction of the economic strategy of global integration one after another,the mobility of international human resources is also increasing,and more and more "returnees" also choose to return to work at home and even serve as corporate executives,contributing to the economic development of our country.Therefore,based on this macro context It is of great practical significance to study the influence of executives' overseas background on earnings management of listed companies in China.At the same time,with the increasingly vigorous economic market,China's institutional investors are also growing,and the equity structure of listed enterprises in China has been continuously improved because of the diversified institutional investors,and has been brought about by its positive role of external supervision.If China's institutional investors can give full play to their external governance role,then the quality of accounting information of listed enterprises in China will be effectively improved,which is of great help to the benign development of China's capital market.Based on the above analysis,this paper reviews the relevant literature on executive overseas background,institutional investor shareholding and earnings management,focusing on the relationship between executive overseas background and earnings management,institutional investor and earnings management,and executive overseas background and earnings management under different institutional investor shareholding ratios.From 2009 to 2018,the listed companies of Shanghai and Shenzhen A shares were selected as the research sample,and according to the number of shares held by institutional investors,the whole sample was divided into high proportion institutional holding and low proportion institutional holding,and therelationship between the overseas background of senior executives and earnings management was discussed.Through empirical research,we find that:(1)The overseas background of executives is negatively related to earnings management,that is,the overseas background of executives can restrain the level of earnings management.(2)Institutional investors' shareholding is negatively related to earnings management,that is,the higher the proportion of institutional investors' shareholding,the lower the level of enterprise earnings management.(3)Compared with enterprises with higher institutional investors,the restraining effect of executives' overseas background on earnings management plays a more significant role in enterprises with lower institutional holdings,and vice versa.The research of this paper is helpful to enrich the theory of senior echelon and broaden the research field of earnings management.In addition,the research conclusion is helpful to improve the overseas talent recruitment system of listed companies,standardize the earnings management behavior of enterprises and thus enhance the value of enterprises,at the same time,it has theoretical and practical significance.