Research On The Impact Of Stable Institutional Investors On Corporate Earnings Smoothin

For a long time,the accounting information disclosed by listed enterprises is an important aspect for external investors to refer to.Among the many accounting information,the profitability of the most important enterprises can be seen by the public first.The stability of earnings data has gradually become the focus of attention and pursuit.Experts and scholars have been studying earnings smoothing for many years.As early as the 1970 s,some scholars began to study earnings smoothing and have contributed a lot of literature so far.However,in the current literature,there are different opinions on whether earnings smoothing can transmit useful information and reduce the degree of information asymmetry.One side believes that earnings smoothing is not conducive to information transmission and will increase information opacity.The other side believes that earnings smoothing has information attribute,which can transmit useful information to investors for their decision-making and enhance enterprise value.The reason for this contradiction is that earnings smoothing is not a simple index.The content expressed by earnings smoothing itself has different properties and has two opposite internal attributes.In the literature,many mathematicians define it as opportunistic attribute and information attribute.After considering the factors that affect the business environment of enterprises,this paper separates the two different attributes of earnings smoothing.The factors or indicators that affect the operation of enterprises in their economic activities can be used to replace the information attribute of earnings smoothing.This part can obviously convey the information of business performance,and the rest is opportunistic.In recent years,China has paid more and more attention to the capital market,and the status of institutional investors has become increasingly prominent.They have many advantages,such as strong professional ability,high information demand,strong capital,broad contacts and diversified investment channels.These advantages support their rapid development and growth.At present,the proportion of institutional investors in the overall shares of enterprises is gradually increasing,With the support of policies and their own development,institutional investors have become one of the main forces of the capital market.As investors of enterprises,they can play a certain role in supervision and governance,are more sensitive to enterprise information,and need enterprises to transmit useful information.However,different types of institutional investors have different needs for information.Those institutional investors who hold a large number of shares and hold shares for a long time have the motivation and ability to hold shares in the invested enterprises for a long time,Encourage enterprises to disclose information useful to their decision-making,that is,the information about the future operating performance of enterprises transmitted by earnings smoothing information attribute.Referring to previous scholars’ research on institutional investors,this paper objectively and comprehensively distinguishes different types of institutional investors from two different aspects,and divides institutional investors into transaction type and stable type,so as to study the impact of stable institutional investors on earnings smoothing.Based on the data of A-share listed companies from 2009 to 2019,this paper first studies the impact of stable institutional investors on the overall earnings smoothing of enterprises,and finds that on the basis of distinguishing different institutional investors,the stable institutional investors in the two types of institutional investors can better promote the earnings smoothing of enterprises.Then,from the analysis of the operation means of earnings smoothing,it is found that stable institutional investors can promote the real earnings smoothing of enterprises better than accrued earnings smoothing.Then,based on the total earnings smoothing of enterprises,the earnings smoothing is decomposed according to its attributes.Finally,it is found that the stable institutional investors are positively correlated with the information attributes of enterprise earnings smoothing.Finally,the external governance mechanism of product market competition intensity is introduced as the regulating variable,and it is found that the stronger the market competition degree is,The more stable the positive correlation between institutional investors and earnings smoothing information attribute.