Does the Managerial Risk Preference Influence Earnings Management of Chinese Listed Companies?

摘要

Earnings management keeps accounting information from reporting the business situation of enterprises objectively and will mislead investors and regulators in decision-making.The purpose of this study is to investigate whether Chinese listed companies with higher risk preference managers conduct more earnings management.The result of empirical study shows that managerial risk preference has a significant impact on earnings management,that is,the higher managerial risk preference is,the higher degree of earnings management will be.We conclude that compared with those managers in small and medium enterprises,managers’ risk preference in large enterprises has more significant impact on earnings management.We also find that private enterprise managers’ risk preference has more significant impact on earnings management compared with those in state-owned enterprises.