Analysis of the Enterprise Competition Strategy, Equity Balance Degree and Earnings Management

YUAN Renmiao, ZHOU Bing

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Journal of Guangzhou University (Social Science Edition) ›› 2018, Vol. 17 ›› Issue (11) : 42-47.

Analysis of the Enterprise Competition Strategy, Equity Balance Degree and Earnings Management

  • YUAN Renmiao1, ZHOU Bing2
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Abstract

The paper selects the data of the listed companies from 2005 to 2016 as samples, measures the competitive strategic variables of the enterprises, and discusses the relationship between the enterprise's competitive strategy and the equity balance degree and the earnings management activities. The research result shows that, no matter what competition strategy is adopted, there is a general surplus management activity of the listed companies in Guangdong Province. The higher the growth of the enterprise is, the higher the earnings management degree becomes. As one of the core contents of the modern corporate governance, the equity balance can effectively restrain the enterprise's earnings management activities. This empirical analysis of this paper can provide a reference for the enterprises of China to adopt more suitable competitive strategies in the fierce market competition.

Key words

enterprise competition strategies / operating profits / enterprise growth / equity balance degrees

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YUAN Renmiao, ZHOU Bing. Analysis of the Enterprise Competition Strategy, Equity Balance Degree and Earnings Management. Journal of Guangzhou University (Social Science Edition). 2018, 17(11): 42-47

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