Research On The Impact Of Non-related Party Relationship Transaction On Earnings Management Based On Property Rights

Relationship transaction is a transaction mode between the market transaction and the internal transaction.This kind of corporate governance mechanism not only bring many advantages to companies,but also bring negative economic consequences to the company.Earnings management,as a product of corporate governance,has serious consequences for the development of companies.Therefore,it is of great significance to explore the relationship between relationship transaction and earnings management.However,Previous studies did not discuss the non-related party relationship transaction separately from the relational transactions that would not induce corporate earnings management,and ignored the investigation of real earnings management.Therefore,This paper aims to discuss whether non-related party relationship transactions will affect the company's accrual earnings management and real earnings management? Considering China's special institutional background,are there any differences in the impact of non-related party relationship transaction on earnings management under different property rights?Based on the above issues,this paper uses China's A-share listed companies from2009 to 2016 as a research sample to empirically test the impact of non-related party relationship transaction on accrual earnings management and real earnings management,and the moderating effect of property rights on the relationship between them.The research shows that the ratio of non-related party supplier relationship transaction and non-related party customer relationship transaction are positively correlated with the company's accrual earnings management and real activity earnings management.To study further,compared with non-state-owned enterprises,State-owned enterprises are less dependent on non-related party customer relationship transaction,resulting in lower levels of earnings management.However,the level of earnings management induced by non-related party supplier relationship transaction is not significantly different from that of non-state-owned enterprises.Finally,based on the conclusions above,this paper puts forward suggestions advancing the improvement of China's market environment,strengthening the supervision of external regulators on corporate information disclosure,etc.