| In recent years,with the implementation of the "approval system",the scale of bond market has been further expanded.As far as the current capital market rules are concerned,the public issuance of bonds must be subject to credit rating by rating agencies.As an intermediary between enterprises and investors,it can not only provide decision-making reference for investors,but also transmit signals to the outside world for companies,which can alleviate the information asymmetry between investors and companies.But most of the rating industry adopts the "issuer payment" mechanism to obtain revenue sources.This system makes the interest dependence between the issuer and the rating agency,which greatly reduces the objective and fair role of the credit rating results.When the company is financing outside,earnings management is a means to improve the profitability of the company in the short term.Earnings management will undoubtedly damage the quality of accounting information and mislead investors.Earnings management behavior of companies is widespread,the sensitivity of rating results to earnings management can reflect the rating quality level.So,as a "bridge" connecting investors and companies,is the rating result sensitive to earnings management? what is the rating quality of credit rating agencies?This is the first problem of this paper.In 2014,the myth of "rigid payment" was broken.In 2018,there were frequent bond defaults,and the amount of bond defaults increased in 2019,which made it possible for us to "test afterwards" whether the credit rating results can identify the default risk,The motivation of the bond default companies to earnings management is often greater when it is issued.Then,What is the degree of earnings management of bond default companies? How sensitive is the rating result of bond default companies to earnings management? What is the rating quality? Can default risk be identified? This is the second problem of this paper.The first bond default event occurred in 2014 and broke out in 2018.Therefore,this paper selects 2014-2018 as the research area to study the sensitivity of credit rating results to earnings management in corporate bond issuers during 2014-2018,so as to measure the level of rating quality,furthermore,the sensitivity of credit rating results of bond default companies to earnings management is used to measure the rating quality level of bond default companies,so as to show whether the credit rating results can identify default risk.Through theoretical analysis and empirical research,this paper draws the following conclusions:(1)For the first question,the conclusion is as follows:The higher the degree of accrual earnings management is,the lower the credit rating is,which shows that credit rating agencies have the ability to identify earnings management behavior,and the results of credit rating are sensitive to earnings management behavior of companies.(2)For the second question,the conclusion is as follows:firstly,Compared with the non defaulting bond issuer,the defaulting bond issuer has a higher degree of earnings management.This is because default bond issuers tend to be more motivated to manage earnings.Secondly,at the time of issuance of the defaulted bonds,the sensitivity of the credit rating results to earnings management is weakened,and the quality of the first rating results of the default bonds is low,which can not effectively identify the default risk.After the issuance of default bonds,the tracking rating results of default bonds companies are sensitive to earnings management behavior,but there is no significant difference between the rating results of bond default companies and bond non defaulting companies,and the rating adjustment of bond default companies tends to be conservative.Finally,in order to improve the credit rating standards and strengthen the supervision of the capital market,this paper puts forward opinions and suggestions from four aspects: credit rating agencies,regulatory agencies,bond financing companies and investors. |
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