The Research Of The Influence Of Institutional Investors Heterogeneity On Real Earnings Management

Under the general environment of China’s economic restructuring,deleveraging and risk prevention,the capital market is experiencing unprecedented deepening reform.As we can see,capital market becomes more and more important in social asset allocation.Corporate creditors,shareholders and other stakeholders have followed the earnings of listed companies for long time.On the other hand,the earnings of listed companies arc the focus of scholars at home and abroad.In order to seek their own interests,the management of a listed company will manage the company’s operations within an uncertain range.Disclosing of earnings information which is weaken in the quality,will mislead investors to suffer losses and make social resources mismatched,which is not conducive to sustained and healthy economic development.Institutional investors in China have grown stronger since their inception and have become an important part of the capital market.Compared with individual investors,institutional investors tend to have stronger power,more professional investment.Existing research at home and abroad shows that institutional investors can strengthen the balance of shareholders of listed companies,monitor the non-compliance of listed companies,and even affect the accounting information disclosed by listed companies.Therefore,this paper combines the situation of China’s capital market to explore the impact of institutional investor heterogeneity on the real earnings management of listed companies.Because there are many heterogeneity factors for institutional investors,this paper separates institutional investors from whether the institutional investors have other business contacts with the invested company and whether the investment strategy is stable.First,institutional investors are divided into pressure-suppressed institutional investors and pressure-sensitive institutional investors based on whether they will have business dealings with listed companies.Based on the existing classification,institutional investors are divided into pressure-suppressed radical institutional investors,stress-suppressed radical institutional investors,pressure-sensitive radical institutional investors,and pressure-sensitive robust institutions based on institutional investors’ investment strategies.There are four types of institutional investors,which discuss their impact on the degree of real earnings management of listed companies.The empirical results show that:(1)pressure-suppressing institutional investors can significantly inhibit the real earnings management of listed companies;(2)pressure-sensitive institutional investors cannot significantly inhibit the real earnings management of listed companies;(3)Pressure-sensitive radical institutional investors and pressure-sensitive and stable institutional investors significantly stimulate the real earnings management of listed companies;(4)Pressure-suppressed institutional investors and pressure-sensitive and stable institutional investors will not significantly stimulate listing the companies’ true earnings management level.