Monetary Policy, Earnings Management And Capital Investment

Earnings management refers to the enterprise for a specific purpose, in the following accounting standards on the external reports of enterprises on the basis of accounting earnings information to control or adjust. Monetary policy is one of the important means of government macro-control, enterprise financing, financing capital and scale is closely related to the looseness of monetary policy. In the context of China’s capital market is not perfect enough, our country enterprise surplus management there are two main reasons: one is the single financing channel; The second is "threshold effect" exists. In our country, the enterprise financing mainly through bank credit channel, it shows that the role of bank for enterprise than the stock market. Therefore, our country’s monetary policy is mainly rely on bank credit to play its regulatory role, however, as the evaluation of enterprise value is the most important information, the accounting information and vital role on bank lending decisions. During the period of tight monetary policy, Banks will not only by improving the conditions of the loan to compress the overall size of the loan, on the other hand, the volatility of the stock market, due to deflation want through a rights issue, IPO or secondary to financing is also more difficult. Surplus management in the financial field, especially the economic consequences of earnings management has been the attention of the scholars, but in the current study, few scholars on the relationship between earnings management and the enterprise own management decisions, not to mention monetary policy on the influence of the relationship between earnings management and enterprise management decision and action mechanism.Focus on monetary policy in macroeconomic regulation and control policy, this paper considers macroeconomic theory, principal-agent theory and the theory of investment, investment scale of company earnings management behavior of firms and the impact of investment efficiency, and then makes a research on the monetary policy adjustment company earnings management behavior and the influence of the relationship between enterprise investment decision. Paper to a-share listed companies in 2008-2013 quarterly data as samples for empirical research. Research conclusion: enterprise investment scale and the degree of earnings management positively correlated relationship; When monetary policy tightening, earnings management behavior of enterprise investment scale enhances its role in promoting. The degree of earnings management and the enterprise are negatively related capital investment efficiency; When monetary policy tightening, earnings management behavior to strengthen the effect of investment efficiency.