The Study On The Impact Of Debt Financing Methods And Life Cycle On Earnings Management

At present,the academic research on earnings management is mostly based on the capital market.and few scholars study it from the perspective of debt market especially from the debt financing.On the one hand,debtors actively carry out earnings management behaviors in order to avoid incurring high default costs because of the constraint of the debt contract with creditors.On the other hand,debt financing induces the earnings management behavior,So it reduces itself.Therefore,in listed companies,there is a space for further study on the impact of debt financing methods on earnings management.At the same time,the enterprise life cycle theory holds that the financing needs of enterprises are different in different stages of life cycle,so the motivation of earnings management is also different.In this paper,the debt financing methods are divided into bank loans,issuing corporate bonds and commercial credit financing,and the impact of three different debt financing methods on earnings management is deeply analyzed.Based on this,the life cycle is added as a regulating variable,this paper discusses the impacts of debt financing methods on earnings management in different life cycle stages.In this paper,a total of 27,552 samples from 2012 to 2021 are selected as observations,and the regression model is used to verify the impact of debt financing and enterprise life cycle on earnings management.Considering the endogenous problem of the established model,this paper uses explanatory variable substitution method and Least squares to test the robustness.Empirical research demonstrates that bank loan and commercial credit financing,will not encourage enterprises to conduct more earnings management;Issuing corporate bonds will encourage enterprises to do more earnings management;Meanwhile,after dividing the life cycle stages of enterprises,it is found that,the debt financing methods adopted by the enterprises in growth stage will have the same adjustment effect on earnings management.And the mature enterprises will weaken the weakening effect of bank borrowing on earnings management.