Empirical Study On The Impact Of High-speed Railway On Enterprise Earnings Management

The "space-time compression effect" brought by the opening of high-speed rail has accelerated the flow of people and information between cities,facilitated the contacts between analysts,auditors and other business people,and thus better played their role as external supervision of the company.Therefore,whether the opening of high-speed rail can improve the regional information asymmetry is a question we are concerned about,because it is the information asymmetry that makes it possible.Management has room for earnings management.It is of great practical significance to clarify the impact of high-speed rail on earnings management for improving regional information environment and standardizing corporate governance.At the same time,it can expand the theoretical research on the opening effect of high-speed rail and earnings management of enterprises.At present,the research on the opening of high-speed rail is mainly from the macro level.There are few studies on the micro-impact of the opening of high-speed rail,and few studies on the impact factors of earnings management from the perspective of transportation infrastructure.Therefore,this paper uses the research methods of DID(double difference method)and dynamic analysis to make an empirical analysis of listed companies from 2008 to 2017.The results show that:first,the opening of high-speed rail can effectively inhibit earnings management,which began to appear two years after the opening of high-speed rail.It shows that the restraint of earnings management by high-speed railway is time-lagging.Secondly,the characteristics of cities and the nature of property rights have a significant regulatory role.Compared with the central city,the non-central city opening high-speed rail has a more obvious inhibition effect on earnings management of enterprises;compared with state-owned enterprises,the opening of high-speed rail has a more significant inhibition effect on earnings management of private enterprises.Thirdly,after the opening of high-speed railway,the audit quality of enterprises has been significantly improved.More and more enterprises employ four major auditing units.In view of the significant relationship between audit quality and earnings management,it can be considered that audit quality is the main way to restrain earnings management in the opening ofhigh-speed railway.The conclusion of this paper is a strong proof of the impact of high-speed rail on earnings management.The construction of transportation facilities can effectively improve the information asymmetry in the market.The government should improve the infrastructure,and enterprises should actively adapt to the changes in the market environment.