Study On The Impact Of Outgoing Audit Of Natural Resource Assets Of Leading Cadres On Earnings Management

The outgoing audit of natural resources assets of leading cadres is a regulatory environmental policy that can optimize and improve the ecological performance evaluation system of Chinese officials.After several years of practice,the progress of local governments in ecological protection and pollution prevention and control is obvious to all.In recent years,scholars have begun to pay attention to the policy effects of this system at the macro and micro levels.In order to improve the quality of accounting information of listed companies,earnings management has always been a research hotspot in the accounting academic circle.According to the research on the relationship between government and enterprises,the implementation of the outgoing audit of natural resources assets of leading cadres will inevitably have a certain impact on the economic behavior of related enterprises.Based on the political motives of earnings management,it is necessary to analyze how enterprises will conduct earnings management in order to achieve the goal of maximizing profits under the macroenvironmental regulation policy.This paper constructs a multi-period difference-in-difference model based on the actual situation of the outgoing audit of natural resources assets of leading cadres,tests the relationship between the system and corporate earnings management,and analyzes whether differences in the company’s external environment or internal characteristics will affect the effect of the system on earnings management.It provides a possible explanation for the relationship between the outgoing audit of natural resources assets of leading cadres and earnings management by expanding the investigation of the impact of outgoing audit on the cost and innovation ability of enterprises.Taking resource-based and heavily polluting listed companies from 2010 to 2020 as research samples,the following conclusions are obtained after regression analysis:(1)At the macro level,the outgoing audit of natural resource assets for relevant leading cadres can not only produce positive environmental governance effects,but at the same time,at the micro level,the system significantly inhibits the earnings management behavior of resource-based and heavily polluting enterprises,and is prominently manifested in Suppress upward earnings management.(2)The outgoing audit of natural resources assets of leading cadres will restrain the earnings management manipulation of enterprises in areas with high marketization to a greater extent,and compared with small-scale enterprises,this system restrains the earnings management of large enterprises stronger.In addition,the effect of this policy on improving the quality of earnings is stronger in SOEs.(3)The cost of resource-based and heavily polluting enterprises has increased after the implementation of the outgoing audit of natural resources assets,but at the same time,the innovation ability of enterprises has also been improved.By constructing a multi-period difference-in-difference model,this paper comprehensively analyzes the impact of the outgoing audit of natural resources assets of leading cadres on the earnings management of enterprises,and preliminarily explores the mechanism of action of the two,which enriches and expands the economic consequences of government audit to a certain extent.and earnings management research.The conclusions of this paper provide suggestions for how the government and enterprises can jointly promote the high-quality development of the economy and the environment,and help to clarify the practical significance of promoting the audit.