Research On Earnings Management Behavior In The Intergenerational Inheritance Of Zhongqingbao

Chinese family enterprises are at the peak of intergenerational inheritance.Under the influence of traditional "family" culture,inheriting their father's business has become the mainstream choice for family development.Academia generally believes that when non-family companies carry on inheritance and succession,former executives usually choose positive earnings management before leaving,while new executives will adopt negative earnings management,with the goal of maximizing their own interests.However,in Chinese society where paternalism is extremely strong,will the founders still choose self-interested earnings management behaviors in the process of handing over the family "scepter" to the second generation? This article uses this as an entry point to study the earnings management behavior of family businesses in the intergenerational inheritance,providing a new perspective for the current theoretical and practical circles to study family businesses in a country with a deep accumulation of "family" culture.It also provides assistance for the smooth inheritance of the family business.This article first sorts out the literature related to generational inheritance and earnings management,and lays the theoretical foundation for this article;then combines the inheritance status of my country's family business,and discusses the inheritance mode of family business in China,the common problems in inheritance,and the paternalism in inheritance.On this basis,this article uses case analysis and event research methods to identify the methods,motivations,and opportunities of the earnings management behavior of the founder of Zhongqingbao during the transition period,and from the three dimensions of market performance,financial performance,and innovation performance Analyze the consequences of earnings management.The study found that:(1)Before the implementation of intergenerational inheritance,the parents were motivated to implement negative earnings management out of emotional care for their children,reducing the "performance starting point" when the second generation succeeded,thereby ensuring Larger room for profit growth will help the second-generation successors to "support";(2)After the implementation of inter-generational inheritance,the parents will adopt positive earnings management to "send the second generation a journey",hoping to achieve rapid corporate performance Promotion to alleviate internal and external doubts about the second-generation talents,thereby helping the second-generation to establish authority;(3)The family governance system of "family is greater than the system" has defects,which makes the internal supervision of the family business lack of effectiveness and continuity,which is a surplus for the parents The implementation of management leaves room;(4)From the perspective of short-term market performance,the parents can reduce the pressure on corporate performance and stock price in the early stage of the second-generation succession through earnings management,but from the perspective of long-term market performance,corporate long-term performance and innovation performance Therefore,the earnings management behavior adopted by the parents is not conducive to the long-term development of the family business.Based on the above conclusions,this article proposes several suggestions on the parental assistance behavior in the inheritance process of family businesses from three aspects:inheritance planning,financial arrangements and corporate governance: formulate an inheritance plan that spans the three stages of "pre-middle-post";based on the long-term development of the company To avoid short-term earnings management behaviors;improve the family business governance system and strengthen internal supervision.This article hopes to provide some help for the smooth completion of the handover of the family business in our country,and help the family business to achieve a long-lasting foundation.