Journal of Northeastern University Natural Science ›› 2019, Vol. 40 ›› Issue (4): 602-608.DOI: 10.12068/j.issn.1005-3026.2019.04.028

• Management Science • Previous Articles    

Effect of Delisting System Changes on Listed Companies′ Earnings Management Behavior

CHENG Fu1, SUN Shi-min1, ZHANG Jia-ye2   

  1. 1. School of Business Administration, Northeastern University, Shenyang 110167, China; 2. School of International Finance, Sun Yat-sen University, Zhuhai 519082, China.
  • Received:2017-12-21 Revised:2017-12-21 Online:2019-04-15 Published:2019-04-26
  • Contact: CHENG Fu
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Abstract: Taking the 2012a Shanghai and Shenzhen Stock Exchange′s revision of the delisting system as the entry point, the 2008~2015a Shanghai-Shenzhen A-share main board listed companies are selected as the research samples and the effect of delisting system changes on the earnings management behavior of listed companies were empirically tested by using the earnings distribution method and multiple regression method. The results showed that after the delisting system changes, the behavior of avoiding negative net profits decreases slightly, but the behavior of avoiding negative net assets increases significantly. The delisting system changes induce the earnings management behavior of avoiding operation revenues lower than 10 million yuan, and the listed companies′ accrual earnings management behaviors decrease significantly, but their real earnings management behaviors such as sales manipulation, expense manipulation and production manipulation increase significantly.

Key words: delisting system change, accrual earnings management, real earnings management, earnings distribution method, sale manipulation, production manipulation, expense manipulation

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