Research On The Influence Of Financialization Of Entity Enterprises On The Comparability Of Accounting Information

The report of the 20 th National Congress of the Communist Party of China proposed: "To build a modern industrial system,adhere to the focus of economic development on the real economy." However,in recent years,due to the declining profit and return rate of the real industry,many real enterprises have gradually abandoned their traditional production and operation business,and begin to invest funds in the financial and real estate fields.By allocating a large number of financial assets,they obtain excess profits from financial activities,thus resulting in the phenomenon of "financialization of entity enterprises",which leads to the trend of "from real to virtual" of our economy.After the excessive financialization of the entity enterprises,the agent conflict and analyst tracking of the entity enterprises are intensified,which leads to a more complex business environment for enterprises.Accounting information,as an important source of public information,has a great impact on the company’s operation and development.The improvement of the comparability accounting information is helpful for information users to fully obtain the internal information of enterprises,improve the operation and management of enterprises,and realize the effective allocation of resources.However,after the financialization of the entity enterprises,enterprises are faced with higher and higher operation risks,and the volatility of their earnings is also increasing.It may fail to meet the earnings expectations of the enterprise management,thus changing the motivation of information disclosure of the management,and financial assets will provide favorable conditions for the management to carry out earnings management,thereby causing the management to manipulate profits and implement relevant earnings management behaviors,which in turn affects the quality of accounting information,and may eventually reduce the comparability of accounting information.So,does the profit manipulation behavior caused by the financialization of real enterprises affect the comparability of accounting information?This paper studies the impact of financialization of entity enterprises on the comparability of accounting information by taking A-share listed companies in Shanghai and Shenzhen from 2007 to 2020 as samples.The results show that the higher the degree of financialization of entity enterprises,the lower the comparability of accounting information;The moderating effect analysis shows that agency conflict and analyst tracking can positively influence the relationship between financialization and accounting information comparability of entities,while financing constraints can negatively regulate the relationship between them.The mechanism test shows that the financialization of entity enterprises can reduce the comparability of accounting information by improving the real earnings management level of enterprises.From the micro accounting information environment,this paper explains the new path that the financialization of entity enterprises restrains the development of real economy,as well as the adverse effects.The research conclusions are helpful to provide an empirical basis for the country to prevent systemic financial risks.