The Research On The Impact Of Foreign Ownership On Real Earnings Management Bebavior Of Enterprises

The pace of opening up to overseas capital and the degree of opening up are important issues that developing countries need to grasp in developing their domestic capital markets.With the increasing openness of China's capital market,foreign investors have participated in the equity investment of China's Listed Companies in many forms.But the existing literature is controversial about whether foreign investors can play a positive role in governance in our country.Improving the quality of accounting information is one of the important goals of corporate governance,and earnings management is an important reason for the low quality of accounting information.This paper base on the existing theory and literature,systematically analysis the characteristics and the economic consequences of foreign shareholders,and base on the special institutional background of China,this paper studies the governance effect of overseas shareholders 'shareholding in China from a brand-new perspective of the influence of foreign shareholders' shareholding on the real earnings management of the enterprise.This paper uses Chinese A-share listed companies from 2003 to 2016 as the research sample,and uses the data of overseas shareholders 'holdings collected by hand to study the influence of overseas shareholders' shareholding on the real earnings management behavior of enterprises and the influence of different property rights on this relationship.The study found:(1)Overseas shareholders' ownership can significantly inhibit the real earnings management behavior of an enterprise,and after the endogeneity problem is controlled,the conclusion still holds;(2)After subdividing the nature of overseas shareholders,there is a significant negative correlation between the shareholders of overseas institutions and the real earnings management of the enterprises,while the impact of overseas individual shareholders on the real earnings management of the enterprises is not significant;(3)Compared with the non-SOE,the inhibitory effect of overseas shareholders on the real earnings management is significantly weakened in the SOE,and the above relations are mainly driven by the central enterprises.The research results of this paper have important implications for China's macro-policy level,micro-enterprise level and market investor level,enhanced the understanding of the governance effect of foreign shareholders in emerging market countries,supplemented the related research on the influencing factors of the real earnings management behavior,and it provides a new perspective for understanding the micro-economic effects of large-scale introduction of foreign capital since China's reform and opening up,and provides evidence for our country to further improve the quality of utilizing foreign investment and to further deepen the reform of SOE.Finally,this article puts forward corresponding policies and suggestions.