Research On The Relationship Between Corporate Strategy And Earnings Management Behavior Based On The Environment Of Internal And External Governance

It was widely known that the listed companies generally had earnings manipulation.The existing literature mainly studies the earnings management behavior of companies from the perspective of capital market motivation,contract motivation and regulatory motivation.However,few literature studies the earnings management motivation of companies from the company strategic.As the overall and long-term planning,company strategy is the starting point and foundation of the enterprise a series of decision,the enterprise behavior and decisive impact on economic consequences,has attracted extensive attention of scholars at home and abroad,especially the enterprise strategy impact on earnings management behavior.In theory,the enterprises with different types of strategy have different operating risks,which are different in performance stability,avoidance motivation,financing demand and executive incentive.In order to cope with the pressure of capital market,debt contract and compensation contract,the enterprise management has different motivations and degrees to manipulate earnings.However,what’s the relationship between business strategy and earnings management?At present,there are few literatures about the impact of business strategy on earnings management in China,Based on this,this paper studies the relationship between enterprise strategic positioning and earnings management behavior.On one hand,it is expected to enrich the literature research on the influential factors of earnings management behavior.On the other hand,it also enriches the literature research on corporate behavior and economic consequences.This article is divided into five parts.The first chapter is the introduction.Based on the research background of reality,this paper analyzes the theoretical and practical significance of this article,sorts out and comments on relevant literature,and elaborates the entire research ideas,methods of application,and innovation and features.The second chapter is the definition of the concept and theoretical basis,the first is to define the relevant concepts of the company’s strategy,and the second is to discuss the four theoretical basis of the analysis of this article.The third chapter is the theoretical analysis and research hypothesis,through the theoretical analysis deduced the research hypothesis.The fourth chapter is an empirical test,which provides data support for the hypothesis of this study from the perspective of quantification,including sample selection,model design and variables,descriptive statistics and regression analysis.The fifth part is the research conclusions and suggestions.The results show that:Firstly,compared with adopting other types of corporate strategies,the firm which adopt exploring strategy have the greater the degree of earnings management.Second,when the firm’s internal control quality is higher,the significant positive relationship between corporate strategy and earnings management behavior is lower,and when the firm’s internal control quality is lower,the significant positive relationship between corporate strategy and earnings management behavior is higher.What’s more,when the firm’s external audit quality is higher,the significant positive relationship between corporate strategy and earnings management behavior is lower.The results show that the external and internal supervision mechanism can help you to inhibit exploration strategy enterprise earnings management behavior.Therefore,in order to reduce the negative impact of corporate strategy on earnings management,we propose following countermeasures:Firstly,standardize the information disclosure of listed companies and promote the full disclosure of enterprise strategic information;Second,guide the company to improve internal governance and curb opportunistic behavior;Third,regulate the management of intermediary institutions such as auditing,and improve the independent and professional competence of intermediary institutions.This paper studies the influence factors of earnings management behavior from the perspective of strategy,on one hand enriches the literature research on the economic consequences of enterprises,on the other hand,it also enriches the research literature in the field of earnings management.