Research On The Impact Of Real Estate Financial Asset Allocation On Earnings Management

Under the new normal,the trend of diversification and complexity of the business of physical enterprises is obvious,and profit fluctuations are frequent,resulting in strong demand for earnings management.Driven by interests,physical enterprises have expanded the scale of financial assets allocation,resulting in the "de-realization to the virtual" tendency to strengthen.At the same time,although the function of "earnings management" of financial assets has been widely recognized by scholars,few scholars have studied the impact of financial assets allocation on earnings management.In view of this,the article selected China's A-share non-financial non-real estate listed enterprises from 2007-2018 as the research object,empirically testing the financial asset allocation on the impact of earnings management.Firstly,the article sorts out the current research status of financial assets allocation and earnings management of physical enterprises.After defining the core concepts,it summarizes the current status of financial assets allocation of China's physical enterprises,and analyzes the impact mechanism of financial asset allocation on earnings management and real earnings management.This raises two hypotheses for this article.Then refer to the existing literature and related theories to establish an empirical model to test the above assumptions.After performing a robustness test on the empirical results,this article further tests the financial asset allocation corresponding to accrued earnings management and real earnings management under the influence of financial asset maturity and financing constraints.Finally,the corresponding conclusions are drawn based on the results of the full text research,and relevant suggestions are made from three perspectives: entity enterprises,investors,and regulatory authorities.The results show that,firstly,the financial asset allocation has a synergistic effect on earnings management and has a suppressive effect on real earnings management.Secondly,the impact of financial asset allocation on earnings management is mainly manifested in entities with high financing constraints.Thirdly,the synergistic effect of financial assetallocation on earnings management is mainly realized through long-term financial assets,and the substitution effect on real earnings management is mainly realized through short-term financial assets.Based on this,this article recommends that entities should focus on their main business and reasonably allocate the size and structure of financial assets;investors should make prudent decisions to protect their legitimate rights and interests;supervisory authorities should establish strict information disclosure systems,improve accounting standards,and reduce profit manipulation.And strengthen the focus on the size and structure of financial assets to improve the forward-looking and accurate earnings management supervision.