Analysis Of The Impact Of The Opening Of High-speed Rail And Field Research On Corporate Earnings Management

With the rapid advancement of China’s high-speed railway construction,the changes brought about by the opening of the high-speed railway are no longer limited to our daily lives,but have also had a significant impact on China’s capital market and regional economic development.The opening of the high-speed rail reduced transportation costs and transportation costs,greatly reduced geographical distances,smoothed the flow of information between different regions,and significantly improved the efficiency of economic operations.In this environment,this article attempts to explore the impact of the high-speed rail opening event on the institutional investors and analysts’ field research behavior,and the impact on corporate earnings management behavior.This article selects the annual data of no-Beijing-Shanghai-Shenzhen listed companies from 2011 to 2018,constructs institutional investor field research and analyst field research indicators,including analyzes institutional investor independent research,analyst independent research,and joint research.Investigate three forms of field research and construct accrual earnings management indicators and real earnings management indicators to measure corporate earnings management.By calculating the shortest distance between listed companies and the three financial centers of Beijing,Shanghai,and Shenzhen as the geographical distance of the enterprise,the impact of geographical distance and the opening of the high-speed rail will be examined.This article first finds that there is a certain distribution of geographical investigations in field investigation behavior and corporate earnings management.After the regression analysis,this paper finds that high-reputation companies that are farther away from the financial center have fewer field investigations by institutional investors and analysts.The joint investigation is particularly affected by geographical distance,and the corresponding enterprise earnings management level is also It increases with distance;low-reputation companies as a whole do not show a clear correspondence with geographic distance.Further,this article explores the impact of the opening of the high-speed rail on field research behaviors and corporate earnings management.By constructing a progressive double-difference model,this paper finds that,after the opening of the high-speed rail,the number of independent and joint surveys of high-reputation companies by institutional investors and analysts has increased significantly,and the level of earnings management of high-reputation companies has decreased significantly.The level of governance has improved significantly.After controlling the field survey variables,this article returns to find that the impact of high-speed rail opening on corporate earnings management is no longer significant,indicating that high-speed rail opening mainly restricts enterprise earnings management behaviors by affecting the field survey.On this basis,this article detailed studies the impact of different survey forms on corporate earnings management,and found that institutional investors can effectively constrain the true earnings management behavior of high-reputation companies through independent research,and analysts can effectively constrain them through independent research.The accrued earnings management behaviors of highreputation companies,while joint research cannot effectively govern the enterprises,and even promote the accrued earnings management behaviors of low-reputation companies.In the end,the paper tests the robustness of the air route’s replacement of highspeed rail,the endogenous problems of field research and earnings management,and the grouping of high-and low-reputation companies.The empirical results show that the conclusions of this paper are robust and reliable.Different from previous literatures,the innovation of this article lies in the following: first,in the study of enterprise earnings management,this article innovatively takes the geographical distance into consideration,and uses the geographical distance "compression" caused by the opening of the high-speed rail to effectively investigate In view of the changes in corporate earnings management behavior when geographic distances change,it is found that corporate earnings management not only presents a higher degree of earnings management as it is farther away from the financial center in the distribution.The shortening of geographic distance can indeed effectively suppress corporate earnings Management behavior;second,in the field survey,this paper analyzes in detail the differences between the institutional investor independent research,analyst independent research,and joint research,and finds that independent research can be effective in the company’s earnings management behavior Constraints,and joint research cannot produce effective governance.