Research On The Impact Of Economic Policy Uncertainty On Earnings Management Under The Ownership Intermediary Of Fund Institutional Investors

At present,China is at a critical stage of deepening the supply-side structural reform.The government pointed out at the annual Central Economic Work Conference that we should strengthen the control of macroeconomic policies to promote the improvement of China’s economic operation.However,frequent changes in macroeconomic policies have had an impact on the operating environment of micro enterprises,leading to increased difficulty in predicting business conditions,and increased information asymmetry between internal and external investors.Earnings management can be a common way for companies to improve their performance in the short term,but it can have a negative impact on the long-term development of enterprises and capital markets.Earnings management behavior comes from the management or shareholders of the enterprise.At this time,internal supervision fails and requires supervision of a third party.As institutional investors,securities investment Funds play an important role in optimizing equity structure and improving corporate governance.Therefore,this article links economic policy uncertainty,securities investment funds,and earnings management and selects A-share listed companies from 2007 to 2021 as the research object.The research aims to reveal the impact of economic policy uncertainty on earnings management,and analyze whether the stock holdings of securities investment funds play an intermediary role in the relationship between the two.Firstly,this paper sorts out the research status at home and abroad,and summarizes the economic policy uncertainty,earnings management,fund ownership relationship;Secondly,combined with enterprise risk theory,information asymmetry theory,principal-agent theory and opportunism theory,I analyze and put forward relevant assumptions;Thirdly,by constructing the influence of economic policy uncertainty on earnings management and the intermediary role model of fund institution shareholding,the paper uses multiple regression model and intermediary effect test method to verify the relationship between economic policy uncertainty,institutional investors and earnings management,and studies the role of institutional investors in the relationship between economic policy uncertainty and earnings management.The paper also studies the development path of the governance function of securities investment fund.Finally,the empirical test results are analyzed and explained.The results show that the uncertainty of economic policy has an inhibitory effect on both real earnings management and accrual earnings management,and the degree of inhibition on accrual earnings management is greater;Economic policy uncertainty has a negative impact on fund holding,and the fund shareholding plays an intermediary role between economic policy uncertainty and earnings management.The intermediary role of securities investment funds is realized both by reducing their holdings,and by supervising corporate shareholders and management.The research of this paper has certain practical significance for the regulatory institutions to prevent corporate earnings management and enterprises to introduce securities investment fund institutional investors under the environment of economic policy uncertainty,so as to improve the governance level.