Stock Price Volatility, Regional Difference and Earnings Management:An Empirical Research for Chinese Listed Firms

摘要

This paper empirically studies the influence of stock price volatility and regional difference on earnings management of 1024 listed firms from 2007 to 2008. It is found that stock price volatility has a very significant positive effect on earnings management; even stock price volatility has a reversing-U curve relationship with earnings management. And the regional difference has a very significant positive effect on earnings management, especially in China's eastern area. In addition, we find that board independence does not play a significant role on earnings management and executive compensation always influence on earnings management significantly as most literatures referred.