Performance Feedback,Analysts' Attention And Classification Shifting Earnings Management Of Listed Companies

With the continuous improvement of capital market supervision and investors' attention to the earnings quality and structure of listed companies,in recent years,classification shifting earnings management characterized by adjusting core earnings has become an important way of earnings management for many companies.The reason why the management of listed companies carry out earnings management using classification shifting is that,in addition to the factors revealed in the existing literature that cater to the expectations of all stakeholders in the market,the situation of enterprises is also worthy of attention.According to the mechanism of the performance feedback,different situations of the performance feedback will affect the decision-making of the managers of the enterprise,and thus affect the various behaviors of the enterprise.Then,will the performance feedback induce classification shifting earnings management of listed companies? As an important force in the governance of external capital market,can analysts effectively restrain the classification shifting earnings management of listed companies induced by performance feedback? The study of the above issues is of great theoretical and practical significance for further understanding the emergence of classification shifting earnings management and its governance.Based on the theoretical analysis of the relationship between the performance feedback,analysts' attention and earnings management using classification shifting of listed companies,this paper makes an empirical study of the relationship among the three.In the research,first of all,it discusses the motivation of the performance feedback to induce classification shifting earnings management of listed companies,and divides the performance feedback into the negative performance feedback and the positive performance feedback,and analyzes how different performance feedback scenarios will affect classification shifting earnings management of listed companies.Secondly,from the perspective of external capital market governance,this paper discusses the impact of analysts' attention on the relationship between performance feedback and classification shifting earnings management of listed companies.The results show that:(1)on the whole,no matter the negative performance feedback or the positive performance feedback,the performance feedback will induce the listed companies to carry out earnings management using classification shifting in the next year.(2)When the listed company is the negative performance feedback,the listedcompany will carry on the upward classification shifting earnings management in the next year.(3)When the listed company is the positive performance,the listed company will carry out the downward classification shifting earnings management in the next year.(4)Whether it is the negative performance feedback or the positive performance feedback,analysts' attention can reduce the degree of classification shifting earnings management caused by the performance feedback.The innovation of this paper lies in:(1)paying attention to the influence of situation factors on classification shifting earnings management of listed companies,revealing the motivation of classification shifting earnings management of listed companies from the new perspective of the performance feedback;(2)discussing the regulating effect of analysts' attention on classification shifting earnings management of listed companies caused by expected performance feedback,It improves the understanding of how the external corporate governance mechanism of listed companies can play a role.The conclusion of this paper provides a new way for investors to identify the classification shifting earnings management of listed companies,provides a new starting point for regulators to regulate the behavior of listed companies,and has a certain reference and significance for reducing the classification shifting earnings management of listed companies.