The Impact Of QFII On Earnings Management Of Listed Companies

QFII(qualified foreign institutional investors)since the introduction of China since 2002 has been the concern of the majority of investors,bec ame a benchmark in the capital market investment.and QFII whether to participate in corporate governance,supervise decision-making of enterprise development,so as to achieve the purpose of introducting the QFII is also of concern to academics.Concerned about the impact of QFII on earnings management is conducive to exploring QFII participation in corporate affairs and the impact of efforts to protect small and medium investors in theory and reality have a certain significance.There are still some shortcomings in the study of existing scholars,especially with the improvement of real earnings management theory,which provides the idea for the research of this paper.This paper first explores the reasons and ways of QFII’s earnings management from the aspects of QFII’s advantage,theoretical basis and motivations of earnings management.The necessity and possibility of QFII for earnings management are described from the perspective of QFII’s ability and willingness,and policy and other external factors.From QFII in the right to speak,the stock price and other aspects of the QFII affect earnings management approach.Secondly,according to the theoretical analysis,the paper puts forward the research hypothesis and constructs the corresponding empirical model.A-listed listed companies in Shenzhen and Shanghai Exchange from 2013 to 2015 were selected as samples of the study,and analyzed and tested by SPSS software.The results show that QFII has no significant effect on earnings management when QFII enters the listed companyand did not become the top ten shareholders.When QFII becomes the top ten shareholders of listed companies,it is negatively correlated with earnings management.The shareholding ratio of QFII is negatively correlated with the real earnings management.QFII holds The proportion of shares is positively related to the accrued earnings management of listed companies.The results show that,after reaching a certain shareholding ratio,QFII will participate in corporate governance and curb earnings management,especially real earnings management,for cost-benefit requirements.On the other hand,accrued earnings management has an alternative effect on real earnings management,and when real earnings management is suppressed,management will turn to accrual earnings management.These conclusions provide support for the government to promote the development of QFII,play the role of QFII,but also have a certain positive effect on the suppression of earnings management.