Research On The Influence Of R&D Input On Earnings Management Of GEM Listed Companies

Research and development activities have a natural high risk.Factors such as large capital input,long research cycle and uncertain research results objectively determine that research and development activities will affect the operating results of enterprises to some extent,thus inducing the earnings management behavior of the management.The implementation of the policy of conditional capitalization accounting for investment in research and development increases the space of earnings manipulation.At the same time,there are abundant researches on the relationship between R&D input and earnings management,but few take the characteristics of the board of directors as a moderating variable to study whether they will have an impact on them.As an executive agency participating in corporate decision-making and performing supervision and management functions,the board of directors is of great significance to the innovation investment efficiency and the restraint of earnings management behavior of enterprises under the background of the continuous development and improvement of corporate governance system.This paper tries to break through the existing research limitations and put the characteristics of the board of directors in the same framework as R&D investment and earnings management.Firstly,the literature research method is used to sort out the relevant literature and theories at home and abroad,which lays a theoretical foundation for the subsequent research.Secondly,on the basis of theoretical analysis,the hypothesis is put forward,and the research object and model design are determined.Thirdly,empirical analysis is made on the data of GEM from 2012 to 2021.Specifically,it includes descriptive analysis from the dimensions of mean,median,extreme value and standard deviation,preliminary judgment of the relationship between variables through correlation analysis,multiple regression of main effect model and moderating effect model by using fixed effect model,and robustness test of research results by alternative explanatory variables and grouping regression.Finally,this paper summarizes the conclusions and puts forward some countermeasures.The results show that R&D investment is positively correlated with earnings management;Board size,network centrality of independent directors and board ownership have negative moderating effects on the positive correlation between R&D investment and earnings management.The combination of the two positions has a positive moderating effect on the positive correlation between R&D input and earnings management.Combined with the practical problems reflected in this study,from the perspective of corporate governance,a series of targeted improvement measures are given in terms of board size,independent director selection,leadership structure and incentive mechanism of listed companies on GEM,in order to improve the efficiency of R&D innovation and the quality of earnings information of listed companies on GEM.This paper innovatively takes the characteristics of the board of directors as a research perspective to provide new empirical data for further understanding of the relationship between R&D investment and earnings management,which is a beneficial exploration of promoting earnings management and governance,and also an expanded application of the function of the board of directors.