An Empirical Study Of The Impact Of Economic Policy Uncertainty On Corporate Earnings Management

For any country,the impact of economic policy uncertainty is obvious.Not only has a direct impact on the macro political structure and economic structure,but also on micro-enterprises.As a microeconomic entity,an enterprise is a direct influencer of economic policies.The change in the level of uncertainty in economic policies means that the external risks undertaken by enterprises are enhanced,and enterprises will be quite sensitive.At this time,enterprises often respond to changes in the external environment through various financial decision-making actions,thereby avoiding the adverse effects of internal and external troubles,such as reducing R&D expenditures and increasing cash holdings.Therefore,the level of economic policy uncertainty affects corporate financial behavior.As a kind of corporate financial behavior,earnings management behavior will naturally be affected by the external environment such as politics and economy.Under the special national conditions of China,the government's macroeconomic regulation and control of the economy is remarkable.The uncertainty of economic policy has a stronger influence on the earnings management behavior of enterprises than in developed countries.For example,the change of economic policies brought about by the replacement of local principal officials,or the bidding of projects,etc.,enterprises will have the motivation to carry out earnings management behaviors to modify accounting subjects,so that enterprises meet the policy standards and project requirements to obtain corresponding economic compensation or Development opportunities.Therefore,economic policy uncertainty will affect the company's earnings management behavior.In order to explore the impact of economic policy uncertainty on corporate earnings management behavior,this paper conducts an empirical analysis of China's A-share non-financial listed companies from 2001 to 2017.The results show that:(1)the higher the uncertainty of economic policy,the enterprise The higher the degree of earnings management;(2)the degree of the first type of agency problem inhibits the relationship between economic policy uncertainty and enterprise earnings management;the degree of the second type of agency problem inhibits the uncertainty between economic policy and earnings management Relationships(3)Enterprises with different property rights aresensitive to economic policy uncertainty,and non-state enterprises are more sensitive to policy uncertainty.Further research found that:(1)the lower the shareholding ratio of the management of the enterprise,the more sensitive the enterprise earnings management is to the uncertainty of economic policy;(2)the uncertainty of economic policy and the accrued earnings management and real surplus in the enterprise earnings management There is an adjustment relationship in the direction of management.The above research findings not only enrich the economic consequences of economic policy uncertainty,but also deepen the research on the factors affecting corporate earnings management from the perspective of macroeconomic policy environment.According to the research conclusions,this paper believes that the key to eliminating the negative impact of economic policy uncertainty lies in the government,and should not change the situation.It should pay attention to field investigations and data analysis,so that policy implementation can adapt to local conditions and prevent the emergence of "air policy" and "drawer policy";At the same time,enterprises should enhance their environmental adaptability,strengthen internal management and supervision,improve the talent management mechanism and incentive mechanism,and maintain the vitality of the enterprise.