Research On The Inhibition Of Enterprise Digital Operation On Real Earnings Management

Under the background of incomplete investor protection system,real earnings management has become a common situation in Chinese listed companies.The short-sighted behavior of management of real earnings management frequently occurs in listed companies,which has a negative impact on the sustainable and stable development of domestic economic market and the legitimate rights and interests of stakeholders,and has aroused wide concern.The implementation of real earnings management behavior is mainly based on principal-agent problems and information asymmetry.It manipulates earnings by means of external intervention in normal business activities of enterprises,misleads stakeholders to believe that enterprises achieve specific performance targets through normal business activities,and damages future business performance of enterprises and the legitimate rights and interests of stakeholders.The empirical study found that digital operation has a inhibitory effect on real earnings management,and the application of digital technology will play a role in improving business performance and optimizing internal governance,and help to inhibit real earnings management behavior.In this article,the case analysis method is adopted to study the inhibitory effect of YM Company’s digital operation on real earnings management.This article analyzed the development process and current situation of YM Company’s digital operation,and adopted the real earnings management measurement model and Cohen’s real earnings management measurement method to analyze the effect of YM Company’s implementation of digital operation on inhibiting the level of real earnings management.Secondly,the principal-agent theory,financing demand theory and information asymmetry theory were used to analyze YM Company’s motivation and ability to implement real earnings management,and through business process reengineering theory and core competitiveness theory,the role of digital operation in inhibiting the motivation and ability to implement real earnings management was analyzed.Finally,it is concluded that digital operation can inhibit real earnings management behavior.This article reveals the mechanism of action and specific impact of enterprise digital operation on the inhibition of real earnings management,constructs a research framework of enterprise digital operation on the inhibition of real earnings management behavior,in order to provide research ideas for the study of enterprise digital operation on the inhibition of real earnings management behavior,and provides a case reference for the practical circle to use digital technology to inhibit real earnings management behavior.