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| Research on the Influence of Local Officials’ Political Achievements Information Concern on Earnings Management |
| HU Longyin，LI Qingyuan |
| Wuhan University, Wuhan, China |
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Abstract From the perspective of enterprise earnings management, this study takes the government work report of Chinese mainland prefecture-level cities as the carrier of performance information, and explores the external effect of local officials’ performance information on the quality of accounting information. It is found that the attention of local officials’ performance information can significantly reduce the earnings management level of enterprises mentioned by performance information. The intensity of external attention, the level of internal governance, and the improvement of borrowing capacity are the theoretical mechanisms for the reduction effect of local officials’ attention on corporate earnings management behavior. The results of heterogeneity analysis show that for enterprises in non-state-owned, fierce industry competition, high degree of marketization, and weak economic growth target constraints, the attention of local officials’ performance information has a stronger marginal effect on reducing the level of earnings management of enterprises. Further research shows that the concern of local officials’ performance information has a spillover effect at the industry level, which can reduce the earnings management level of enterprises in the same industry as the mentioned companies.
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Received: 16 June 2023
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