Research On The Influence Of Strategic Differences On The Choice Of Earning Management Method From The Perspective Of Enterprise Life Cycle

In recent years,it is not uncommon that excessive earnings management behavior was punished by regulator of listed companies.There is a big difference between the financial results of an enterprise report and its actual financial results through the use of different means of earnings management and methods.This phenomenon has aroused the attention of supervision department and a series of relevant policies have been introduced to curb the occurrence of the behavior.At the same time,it has also become a hot topic in academic research.Different scholars have studied the means,motives and economic consequences of earnings management from different perspectives.However,few scholars study the enterprise earnings management from the perspective of corporate strategy.And there are different strategic objectives and operating characteristics in different stages of the enterprise life cycle,which will affect the choice of different ways of earnings management manipulation.The ways of earnings management generally include accruals earnings management and real activity earnings management.The economic value of these two ways of earnings management are different.Compared with accruals earnings management,the real activity earnings management is more damaging to the value of the enterprise,but its concealment is higher than the accruals earningsmanagement.Compared with the real activity earnings management,accruals cost management is low.It is an important part of this paper that how to weigh the balance between the enterprise management and how to choose the way of earnings management.On this basis,the paper introduces the theory of enterprise life cycle to further study the effect of strategic difference on the choice of earnings management.In this paper,the relevant data of listed companies in Shenzhen and Shanghai are taken as samples.Based on the relevant theoretical analysis,this paper puts forward the hypothesis of this paper.Through the establishment of the model for multiple linear regression analysis,the results show that:The difference in corporate strategy will affect the degree of earnings management,and the greater the difference in corporate strategy from the industry,the greater the degree of earnings management.In the case of differentiated earnings management,the greater the difference in corporate strategy,the more inclined to choose the surplus management of the project to carry out earnings manipulation.Compared with the firms with large strategic differences,the firms with less strategic differences are more likely to choose the real activity earnings management mode for earnings management.The sample enterprises were divided into different groups when introducing the enterprise life cycle theory.The author found that further research conclusions in all the sample still holds.The enterprises tend to chooseaccrual earnings management project earnings manipulation in the growth stage and the recession;mature enterprises are more willing to earnings management of real activity earnings manipulation.Finally,according to the research results,some suggestions are put forward for internal manager,external investors,government departments and audit institutions.