|
|
|
| The Impact of Media Attention and Managerial Overconfidence on Earnings Management |
| WANG Fusheng，WANG Ye，LIU Shiyu |
| Harbin Institute of Technology, Harbin, China |
|
|
|
|
Abstract This article investigates the effects of managerial overconfidence and media attention on earnings management using the A-share listed companies in China as samples. Meanwhile, this study investigates earnings management patterns on the media attention encountered among overconfident managers. The results of the study demonstrate that the media attention forces companies to improve earnings management due to market pressure and managerial overconfidence contributes to the confidence of the company, improving earnings management. However, there is an antagonistic interaction between the two factors when both media attention and managerial overconfidence are applied to earnings management. On the one hand, managerial overconfidence relieves external pressures imposed on the company caused by media attention and thus restrains the functionality of promoting earnings management with media attention. On the other hand, the external market pressure forces overconfident managers to constrict their actions in earnings management.
|
|
Received: 12 April 2021
|
|
|
|
|
|
|
