Economic Cycle,Earnings Management And Audit Quality

China's macro economy has decline continuously since 2008,and China's macro economy will face greater economic downward pressure in the future.At the eleventh meeting of the central financial leadership group,Xi Jin Ping emphasized the implementation of economic structural reform.In the context of our country's transition from "the old normal economy" to "the new normal economy" and the economic structural reform,the enterprises of all industries are facing great challenges.The phenomena of poor business performance,high fluctuation of accounting surplus and manipulation of earnings management frequently occur.Therefore,in the context of the economy,it is particularly important to study the impact of macroeconomic fluctuations on micro enterprises.Earnings management has always been an important research topic in the financial field.In the process of earnings management,the authenticity and accuracy of accounting information in financial statements are weakened,that is,accounting information in financial statements can not reflect the real operation of enterprises in a real and fair way.The financial information of "whitewash" on one hand affects investors' judgement of creditors',government and examination and approval institutions,and on the other hand,it increases auditor's audit risk.In the past,scholars tended to study enterprise operation management from the micro level,and less consider the impact of economic fluctuation on earnings management from the perspective of macroeconomic cycle.From the perspective of macroeconomic cycle,we can not only deeply analyze the impact of business cycle fluctuation on Earnings Management under the background of China's economic downturn,it is also a supplement to the research of traditional earnings management.In this paper,2007-2016 A shares of non-financial listed companies as a sample,to the economy of our country will face downward pressure on the government to promote and implement the supply side reform as the background,focuses on three aspects: first,China's macroeconomic fluctuations impact on corporate earnings management;second,in China's GDP growth in the case of a slowdown,the enterprise operating earnings management motivation which specific;third,standing on the perspective of the registered accountant,the situation will lead to the decline of audit quality of cpa.Through theoretical analysis and empirical test,this paper draws three main conclusions:(1)the macroeconomic cycle fluctuations in China will affect the earnings management of listed companies.Compared with the economic expansion period,the listed companies have a greater degree of earningsmanagement in the period of economic systole.(2)under other conditions,in the period of economic contraction,the earnings management of the listed companies are higher,and the audit quality of CPA is lower.(3)When the listed companies increase earnings management in the period of economic tightening,the " big four " accounting firms are less influential than the "non big four" accounting firms,and the audit quality is relatively high.