报告内容提要： We investigate the relation between political promotion of top executives in state-owned enterprise (SOE) and earnings management in China using unique political promotion data. We find that SOE executives prefer real earnings management than accrual earnings management for political gain. Moreover, when information asymmetry is lower and the managerial power is greater, the shift from accrual earnings management to real earnings management is more pronounced. Further tests show that high levels of accrual earnings management may lead to demotion. The above results suggest that the extent to which earnings management affects political promotion depends on whether it will be detected by superior government authorities, rather than on whether it improves financial performance. Our findings extend in the literatures of political promotion and earnings management. Our results provide the Chinese government an empirical reference for reforming and improving the incentive mechanism of SOEs in China. |
报告人简介： 
Dr. Ruixue Du is currently an Associate Professor of Accounting at Menlo College in California. Before joining Menlo College, she was an Associate Professor of Accounting at University of Wisconsin Stevens Point (UWSP). She graduated from Nankai University with a bachelor’s degree in Finance. Then she went to United States to pursuit her master’s and doctorate degrees at Virginia Tech. She is a CPA and CMA. She has been actively conducting research in financial reporting, intangible assets valuation, auditing, as well as accounting education. She has published in Review of Economics & Finance, Journal of Accounting and Financial Reporting, Journal of Hospitality Financial Management, On Economic Problems, Journal of Accounting and Finance, Journal of Accounting and Free Enterprise, etc. She has taught introductory financial accounting, intermediate financial accounting, advanced accounting, managerial accounting, strategic management cap stone, and data visualization courses at both the undergraduate and graduate levels. |
