Does The Internet Business Model Affect Earnings Management?

This paper uses the relevant data of China's A-share listed companies to obtain empirical research: The implementation of the Internet business model by enterprises will increase the degree of enterprise earnings management.Further research has found that enterprises implementing the Internet business model will increase the degree of corporate earnings management by increasing the financing needs.On the one hand,the reason is the initial capital investment of the establishment of the Internet business model is large;on the other hand,the reason is the Internet business model has greatly expanded the enterprise boundary and business boundaries,and the enterprise has adopted a Internet business model to move toward a diversified expansion strategy,in this process,the company needs sufficient funds to support the expansion and development of its business scope,both of which make the company face greater financing needs.From the previous research,it can be seen that the greater the financing needs of enterprises,the greater the degree of earnings management of enterprises.In addition,through further research,this paper finds that the nature of property rights is the adjustment variable that affects the relationship between Internet business model and enterprise earnings management.Compared with state-owned enterprises,the implementation of Internet business model by non-state-owned enterprises is more effective in increasing the degree of earnings management.This paper has certain policy significance: the adoption of the Internet business model is the general trend of the enterprise,and the enterprise itself enjoys the benefits brought by adopting the Internet business model.However,in this process,we must pay more attention to solving the financing problems of enterprises,so as to further reduce enterprise earnings management,which will help to enhance the effect of traditional enterprises to implement the Internet business model,and help to promote the deep integration of the Internet and the real economy.