Macroeconomic control, political costs and earnings management: Evidence from Chinese listed real estate companies

Artikel

Firms in China have faced high political costs during China's economic transition, because they are affected by macroeconomic policies. However, research to date has offered no consistent conclusions on the relationship between political costs and earnings management in China. This study tests whether real estate firms attempt to decrease earnings during periods of macroeconomic control, using variables related to the national real estate market as proxies for political costs. We find that political costs are negatively related to earnings management in listed real estate firms. In addition, we find that non-state-owned enterprises utilized more income-decreasing accruals during this period. Our results are consistent with the political costs hypothesis.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 4 ; Year: 2011 ; Issue: 3 ; Pages: 91-106 ; Amsterdam: Elsevier

Klassifikation und Themen

• Klassifikation: Management ; General Financial Markets: Government Policy and Regulation ; Corporate Finance and Governance: Government Policy and Regulation
• Thema: Political costs ; Earnings management ; State-owned enterprises ; Non-state-owned enterprises

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chen, Donghua ; Li, Jieying ; Liang, Shangkun ; Wang, Guojun
• Ereignis: Veröffentlichung
• (wer): Elsevier
• (wo): Amsterdam
• (wann): 2011

Weitere Informationen

• DOI: doi:10.1016/j.cjar.2011.06.002
• Handle: http://hdl.handle.net/10419/187553
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ