Free Cash Flow, Debt Maturity And Earnings Management

Public utility listing Corporation is beneficial to the people’s livelihood, plentyof free cash flow is created the conditions be richly endowed by nature ’on-the-jobconsumption, excessive investment behavior, but the managers to hide the damageto the interests of the company to implement earnings management, this paperattempts to suppress free cash flow by debt maturity, which weakens the publicutilities listing Corporation manager cover to damage the interests of the companythe purpose of behavior based on the degree of earnings management and earningsmanagement.In this paper, A shares the public utilities listing Corporation2005-2011data asthe study sample, the free cash flow, debt maturity and free cash flow and debtmaturity of the product and the relationship between earnings management, earningsmanagement, this paper creatively the weakening effect of debt maturity on theagency costs of free cash flow caused by the extent of, and Study on the relationshipbetween creative differences of different monetary policy and different marketconditions. Results: significant positive correlation on the whole public utility listingCorporation free cash flow and earnings management, long-term debt ratio,long-term debt ratio and free cash flow of product and the degree of earningsmanagement is negatively related to the overall, long-term debt through thesuppression of free cash flow to achieve earnings management reduce free cash flowagency the cost caused by the degree of objective; in the tightening of monetarypolicy, the public utilities listing Corporation is positively related to free cash flowand earnings management, long-term debt ratio and free cash flow of product andthe degree of earnings management is significant negative correlation, no significantrelationship in the loose monetary policy; in the high degree of marketization,significant positive correlation with free cash flow and earnings management.