Research On The Influence Of Outgoing Audit Of Leaders’ Natural Resources Assets Leaving Audit On Earnings Management Of Heavily Polluting Enterprises

In recent years,China’s economy has developed rapidly,achieving continuous economic growth in just 40 years,and successfully being promoted to the world’s second largest economy.However,China’s rugged development model has put the environment on which it relies for survival to an unprecedented test.To this end,the government actively introduced guidelines and policies to improve the ecological environment.The Third Plenary Session of the 18 th Central Committee of the Communist Party of China proposed for the first time the implementation of natural resource asset retirement audits for leading cadres.The Fifth Plenary Session of the 18 th Central Committee further clarified the requirements for the efficient use of natural resources and the strengthening of ecological environment governance,exploring a healthy development path that is in line with steady economic growth and continuous environmental improvement.At the same time,in China,heavily polluting enterprises are not only the main body of resource consumption and pollution emissions,but also the guardians of the environment.If they can actively implement environmental policies and fulfill their basic social responsibilities for environmental protection,they are expected to achieve sustainable development and maximize social value of heavily polluting enterprises,and ultimately promote the construction of ecological civilization in China.Therefore,based on the characteristics of dividing natural resource asset departure audit into regions and stages to carry out pilot work,this article takes the sample of heavily polluting enterprises from 2011 to 2017 as the research interval,establishes a multi-period double difference model and regression model to conduct in-depth research on the impact of natural resource asset departure audit on earnings management of heavily polluting enterprises,Through a full sample test,it was found that the natural resource asset departure audit of leading cadres has a significant inhibitory effect on the accrual and real earnings management behavior of heavily polluting enterprises,and has greatly improved the quality of earnings information;Through the analysis of regulatory effects,it was found that compared to heavily polluting enterprises with low shareholding ratios and low environmental investment from institutional investors,high shareholding ratios and high environmental investment from institutional investors can significantly enhance the inhibitory effect of natural resource asset departure audits on the accrual and true earnings management of heavily polluting enterprises;Through heterogeneity testing,it was found that compared to non-state-owned enterprises,heavily polluting enterprises with low marketization and low tax collection and management intensity,natural resource asset departure audits have a more significant inhibitory effect on the accrued earnings management and real earnings management of state-owned enterprises,heavily polluting enterprises with high marketization and high tax collection and management intensity,respectively.Finally,based on both theoretical and empirical analysis,the article proposes corresponding strategic suggestions from the perspectives of government and enterprises,with the aim of improving the audit system for natural resource assets departure of leading cadres,urging local officials and leading cadres to actively fulfill their environmental responsibilities,accelerating the transformation of green development of heavily polluting enterprises,reasonably and effectively supervising heavily polluting enterprises,and safeguarding their legitimate rights and interests.