1. Can enterprise green transformation inhibit accrual earnings management? Evidence from China
- Author
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Yufei Lei, Yucong Yan, Chen Chen, Tianyao Luo, Yingdong Wang, and Hao Wu
- Subjects
Green transformation ,Earnings management ,Analyst tracking ,Financing constraints ,Science (General) ,Q1-390 ,Social sciences (General) ,H1-99 - Abstract
This study theoretically and empirically analyzes the impact and mechanism of corporate green transformation on accrual earnings management using a sample of China's A-share listed companies from 2015 to 2021. The results indicate that the green transformation of enterprises helps restrain accrual-based earnings management, especially accrual-based earnings management, which increases profits, and that the inhibition effect of enterprise green transformation on earnings management is more significant in high-tech and growth-stage enterprises. The mechanism test shows that corporate green transformation can inhibit accrual-based earnings management by increasing analyst follow-up and easing financing constraints. Using China's environmental tax law, promulgated in 2018, as an exogenous shock to construct the PSM-DID, the conclusion still holds after alleviating endogeneity. Further research has found that green transformations can also help inhibit real earnings management. This study provides new empirical evidence for a comprehensive understanding and evaluation of the governance role of corporate green transformation and provides a reference value for further comprehensively promoting the green transformation of Chinese enterprises and improving the quality of accounting information.
- Published
- 2024
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