GDP growth incentives and earnings management: evidence from China

• Main Authors: CHEN, Xia, CHENG, Qiang, HAO, Ying, LIU, Qiang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: GDP growth; Earnings management; China; Accounting; Asian Studies; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1873; https://ink.library.smu.edu.sg/context/soa_research/article/2900/viewcontent/GDP_Growth_Incentives_China_sv.pdf
• Institution: Singapore Management University

Using data from China, we examine whether and how the incentive to boost GDP growth at the government level affects earnings management at the firm level. We find that firms in provinces with GDP growth lower than the national level or the average of the adjacent provinces are more likely to engage...