An Empirical Study on the Impact of Economic Policy Uncertainty on Earnings Management of Listed Companies

Jingwen Kan

doi:10.54691/bcpbm.v32i.2880

Authors

Jingwen Kan

DOI:

https://doi.org/10.54691/bcpbm.v32i.2880

Keywords:

Economic policy uncertainty; Accrual earnings management; Real earnings management.

Abstract

Taking 273 listed companies from 2011 to 2019 as the research sample, we have a total of 2730 balanced panel data. And we uses the Uncertainty Index of China Economic Policy constructed by Baker et al. (2016) as the measure of economic policy uncertainty (EPU). Besides, using the Jones model and Roychowdhury's calculation method respectively, with accrual earnings management (EM) and real earnings management (REM) as the explained variables, the paper constructs a multiple regression model. Using STATA15.1 empirical analysis, it is found that the level of economic policy uncertainty increases, and listed companies reduce accrued earnings management activities and real earnings management activities.

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References

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