Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/187553
Year of Publication: 
2011
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 4 [Issue:] 3 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2011 [Pages:] 91-106
Publisher: 
Elsevier, Amsterdam
Abstract: 
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.
Subjects: 
Political costs
Earnings management
State-owned enterprises
Non-state-owned enterprises
JEL: 
G18
G38
E6
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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