State Ownership,Managerial Overconfidence And Earnings Quality

With the rapid development of the capital market,the increasing number of listing Corporation and the increasing investment consciousness of our country,the information disclosure quality of listing Corporation is more concerned.However,due to the enterprise accounting standards to a certain degree of discretion,as well as the managem of listing Corporation by the equity incentive and the principal agent of information asymmetry between the two sides,the listing Corporation managers may disclose the financial report,which has a negative impact on the interests of stakeholders.Self-confidence refers to the fact that people exaggerate their true understanding of things,overestimate their knowledge and ability,and think that they are more accurate than the facts.Managers will also appear over-confidence,and it is better than ordinary people's knowledge,position,achievements and other advantages that will aggravate their performance of over-confidence.Therefore,it is of great significance to study the influence of managerial over-confidence on the earnings quality of the company from the perspective of economic decision-making.However,the capital market of China is different from the western countries,the state-owned holding listing Corporation occupy a large proportion.Because of the absence of the owner,the soft restraint of debt and the existence of government intervention,the corporate governance of the state-owned holding company is often a mere formality,and shareholders and creditors can not form effective control and supervision.Based on this,we think that it is very important to study the relationship between the management level and the earnings quality based on the property rights.This paper first analyzes the background and significance of the research,research objectives,methods and content through the review of domestic and foreign literature and then puts forward the main points of this paper.In the empirical part of this paper,we take the 2010-2014 shares of A shares as the research sample and earnings management as the proxy variable of earnings quality.We use the modified Jones model to measure the absolute value of the listing Corporation as a proxy variable and the earnings forecast deviation as the management level of over confidence.For property rights,according to the nature of the listed Corporation in the wind database,the sample is divided into state-owned listed Corporation and private listed Corporation.In order to better compare the differences between state-owned and private listed Corporation,we removed the otherproperties of the listed Corporation.The study found that the level of managerial over-confidence can significantly reduce the earnings quality of the listed Corporation.To further distinguish property right,because of the difference between the owners,debt constraint and government intervention,the managers of private listed Corporation is more confident and more likely to do earnings management.Finally,some suggestions are put forward for the research conclusion.