Product Market Power?Analysts' Attention And Earnings Management

Due to the separation of ownership and management rights of listed company in China,the degree of information asymmetry between the trading parties in the capital market is relatively large,which provides the management layer with the space and opportunity for improper earnings management,thus damaging the relevant interests of the party in the information disadvantage in the capital market,that is,the investors,and destroying the long-term stable development of the market economy.From the current research literature on earnings management,scholars mostly discuss internal factors such as corporate governance,and few researches on earnings management from the perspective of external market competition.Therefore,this paper studies the impact of the competitive position of enterprises in the industry on the accrual earnings management and real earnings management of the company,and explores the impact path from the perspective of intermediary analysts' attention,which provides empirical evidence for the influencing factors of earnings management of the company.On the basis of reading and combing a lot of literature about earnings management,this paper puts forward the theoretical hypothesis and research framework,and constructs the research system of the influence path of product market power-analysts' attention-earnings management.As manufacturing industry belongs to the basic industry and core industry in all industries in China,and there is a large space for controlling company's earnings in manufacturing industry,therefore,this paper takes the financial data of Listed Companies in Shanghai and Shenzhen A-share manufacturing industry in 2014-2018 as the research sample,and uses the intermediary test method to empirically tests the indirect effect of analysts' attention on product market power and earnings management.The results show that: with the increase of market power of products in the same industry,the degree of accrual and real earnings management of the company decreases;analysts pay more attention to the listed companies with higher market power of products;analysts' attention play a partial mediating effect between the market power of products and the level of accrual earnings management,while the masking effect between the market power of products and the level of real earnings management;further research shows that the process of marketization can promote the inhibition of product market power on earnings management,enhance the partial mediating effect of analysts' attention onproduct market power and accrual earnings management,and weaken the masking effect of analysts' attention on product market power and real earnings management.Finally,some policy suggestions are put forward according to the empirical test results.The research conclusion of this paper can enrich the relevant literature of earnings management influencing factors,and open the "black box" of the influence of product market forces on earnings management,making the research of earnings management more comprehensive and in-depth,helping to provide reasonable reference for corporate governance,in order to protect the interests of the majority of small and medium-sized investors.This thesis has 3 figures,23 tables,128 references.