Confucian Culture and Corporate True Surplus Management: Facilitation or Inhibition?
Author(s)
Cheng Fangqi , Yu Tuanye , Shi Kailin ,
Download Full PDF Pages: 50-73 | Views: 195 | Downloads: 52 | DOI: 10.5281/zenodo.7793183
Abstract
As the requirements for quality of accounting information continue to be rigorous, corporate surplus management is gradually biased toward using real business for it. Real surplus management behavior is covert and private, and can damage the long-term value of enterprises, so how to curb real surplus management behavior is an important issue worth studying. This paper selects a sample of listed companies in Shanghai and Shenzhen A-shares from 2015- 2019 to test the influence of Confucianism. This paper selects a sample of listed companies in Shanghai and Shenzhen A-shares from 2015-2019 to test the influence of Confucian culture on corporate true surplus management from an informal institutional perspective. It is found that the two are significantly negatively correlated, and this relationship is more prominent among non-state enterprises, growth stage enterprises and Further research finds that Confucian culture can complement the internal and external Further research finds that Confucian culture can complement the internal and external monitoring mechanisms of firms, with external audits reinforcing this disincentive effect and internal controls reinforcing the moderating effect in The Confucian culture can complement the internal and external monitoring mechanisms of firms, with external audits reinforcing this disincentive effect and internal controls reinforcing the moderating effect in firms with more effective internal controls.
Keywords
Real earnings management, informal system, Confucian culture, internal monitoring, external monitoring
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