Research On The Impact Of Related Party Transaction On Earnings Management Of Agricultural Listed Companies In China

With the rapid development of the capital market represented by Shanghai and Shenzhen stock market and the continuous improvement of the content of China’s accounting standards,the internal finance of enterprises has more and more flexibility in accounting treatment,and earnings management behavior also occurs frequently in many listed enterprises.On the other hand,the business strategy of enterprise group has led to the rapid increase of the proportion of related party transactions in the daily transactions of Listed Companies in China,and the financial risk of related party transactions is increasing day by day because the related party transactions between listed parent companies and subsidiaries have also become opaque.Since the reform and opening up,agriculture has always been the pillar industry of China’s economic development and the foundation of China’s economic globalization.Agricultural listed companies are in the leading position in the agricultural industry and have attracted more and more attention in recent years.However,agricultural listed companies themselves have special weakness,resulting in long investment cycle,difficult financing and low profit.Most of them are in a weak position in the market competition.In order to meet the expectations of investors and complete the annual profit of the enterprise plan,many agricultural listed companies will prefer to carry out abnormal earnings management activities.Due to the high concealment and low cost of related party transactions,using them for earnings management has become the "best choice" of most agricultural listed companies.Therefore,the study of the impact of related party transactions of agricultural listed companies on earnings management conforms to the era trend of the country’s efficient development of agricultural industry at this stage.At the same time,it also has important practical significance for the stability and high-quality development of agricultural enterprises.This thesis takes the agricultural listed companies in China as the research object.Firstly,it analyzes the actual situation of the agricultural listed companies and the motivation and ways of using related party transactions for earnings management.Secondly,taking the agricultural companies listed in China’s A-share market from 2015 to 2019 as the research sample,making comprehensive use of the revised Jones model and roychowhuey model,and dividing earnings management into accrued earnings management and real earnings management,this paper empirically analyzes its relationship with the degree of connected transactions and the degree of connected purchase and sale(reflecting the proportion of connected purchase and sale business in connected transactions).Finally,combined with the research enlightenment of typical case enterprises,the paper puts forward relevant countermeasures and suggestions from the two levels of government and enterprises.The results show that the degree of related party transactions of agricultural listed companies in China has a positive promoting effect on the two types of earnings management(accrued and real earnings management),while the degree of related party purchase and sales has a positive and negative correlation with the two types of earnings management(accrued and real earnings management).The research of this paper refines the internal and external factors of earnings management of agricultural enterprises,and clarifies the specific ways for enterprises to manipulate two different earnings management,which has important reference value for the steady development of agricultural listed companies and the scientific implementation of internal and external supervision.