Research On The Impact Of Earnings Management On Investment Efficiency Of Listed Companies

Macro-monetary policy has played a very good role in regulating the national economy.In recent years,scholars and policy makers at home and at broad have paid more and more attention to the scope and impact of monetary policy.Monetary policy directly or indirectly influences the behavior of enterprises through transmission mechanism,such as from the perspective of financing constraints.Financial statements are the main way for stakeholders to obtain information and resources.The business operation and cash flow reflected in financial statements will affect the investment or lending of enterprises.The investment of enterprises is the basis and important index for the long-term development of enterprises.Rainy enterprises can obtain continuous Cash inflows and asset inflows through improving the efficiency of investment to achieve the goal of expanding scale and stable development.However,investment is often constrained and constrained by various aspects.Investors and creditors will make decisions after evaluating the overall situation of the enterprise.The basis of decision-making is often the financial statements and other relevant documents of the enterprise.From the micro point of view,enterprises tend to beautify financial statements through earnings managements,while the reports disclosed by enterprises will affect the efficiency of investment.In the period of monetary policy tightening,the financing constraints of enterprises will rise and the cost of financing will increase,so enterprises will have more motivation to carry out earnings managements,but earnings management will have an impact on the investment efficiency of enterprises.In the financial field,the analysis of the consequences of earnings managements has always been the focus of attention,and the relationship between monetary policy and earnings managements and enterprise investment is worth discussing.Based on the literature review of monetary policy,earnings managements and investment efficiency,and on the theoretical basis of enterprise investment behavior,principal-agent theory and information asymmetry theory,the dissertation runs through the transmission mechanism of monetary policy and puts forward relevant hypotheses.Then the main research object is listed A-share companies in Shanghai and Shenzhen Stock Exchanges from 2009 to 2017.The monetary policy refers to Lu Zhengfei and Yang Deming(2011).Earnings managements is divided into accrued earnings managements and real earnings managements.The revised Jones model and Roychowdhury(2006)model are used to represent the investment level of the company.The residual of the model is Richardson(2006),which represents inefficient investment.This paper studies the impact of earnings managements on investment efficiency in different periods of monetary policy.The results show that:(1)Earnings managements(accrued earnings managements and real earnings managements)will lead to the reduction of investment efficiency.(2)During the period of monetary tightening,earnings managements(accrued earnings managements and real earnings managements)has a more obvious inhibitory effect on enterprise investment efficiency.(3)In the period of monetary policy tightening,the effect of earnings management of non-state-owned enterprises on the investment efficiency of enterprises is more obvious than that of state-owned enterprises.The results of this paper have implications for policy makers and relevant regulatory agencies.