QFII Holding Shares,Equity Concentration And Real Earnings Management

Since the 21 st century,the events of Guangxi Huiqiu magical Science and Technology motion,the financial fraud of Jiuhao Group,and the financial fraud of Toshiba have all reflected the existence of serious earnings management phenomenon in listed companies.At the same time,after more than ten years of development,QFII has become an important participant in China’s capital market.Especially in recent years,State Administration of Foreign Exchange has cancelled a series of policies that restrict QFII,and QFII has been able to achieve rapid development.QFII is an institutional investor with strong professionalism and long-term investment concept.Its influence on earnings management and its role path are worth exploring.This paper uses a sample of 1910 listed companies listed on the Shanghai and Shenzhen Stock Exchanges from 2014 to 2017 as the research object and descriptive statistical analysis,correlation testing,multiple regression,and other methods are used.Firstly,this paper studies the impact of QFII shareholding ratio on real earnings management;Secondly,it studies the relationship between equity concentration and real earnings management,and the influence of equity concentration on QFII shareholding ratio and real earnings management.Finally,it further studies the influence of property rights on QFII shareholding and real earnings management.The results show that:(1)The higher the proportion of QFII holding shares,the lower the degree of upward real earning management,and the higher the degree of real earnings management.(2)The higher the concentration of equity,the higher the degree of upward real management and the lower degree of real earnings management.(3)QFII holdings can indirectly affect upward earnings management and downward earnings management through equity concentration.(4)The nature of property rights has an impact on the relationship between QFII shareholding and real earnings management.QFII holdings have less effect on state-owned companies’ upward real earnings management and down earnings management than non-state-owned companies.Based on the research results,this paper believes that,on the one hand,QFII has a longer-term perspective and has a good inhibitory effect on the upward earnings management with speculative behavior;On the other hand,the listed companies in China have problems of excessive concentration of equity and need to be improved.Therefore,this paper proposes policy recommendations: First,the development of QFII should pay attention to improve the corresponding legal supervision system;Second,reduce the concentration of equity in listed companies,form a shareholding structure between internal and external checks and balances;third,improve the problems of state-owned enterprises,that is,the nature of property rights as state-owned enterprises,and thus play the role of QFII in earnings management.The innovation of this paper is to study the impact of QFII shareholding ratio on real earnings management from a new perspective,and to add equity concentration as a mediator to explore the impact of QFII holdings on real earnings management.It has enriched the research on the impact of certain types of institutional investors’ shareholdings on earnings management.