The impact of anti-corruption measures and risk effects on equity incentives and financial misreporting in China

China Journal of Accounting Research

Constantinos Alexiou¹  Zili Su² 

[1] TIAS School for Business and Society, Tilburg University, Tilburg, Netherlands;School of Finance, Central University of Finance and Economics, Beijing, China;

关键词: Equity incentives;    Anti-corruption;    SOEs;    Non-SOEs;    Financial misreporting;    Risk effects;   

DOI  :  

来源: DOAJ

【 摘 要 】

This study examines the effects of anti-corruption and equity incentive risk on financial misreporting in the context of China’s unique corporate ownership structure and governance regime. Using a sample comprising 2,708 cases of financial restatement over the 2007–2017 period. Our key findings suggest that managers’ shareholdings are significantly and positively associated with their firms’ financial misreporting, and certain equity risk factors dramatically alter Chinese corporate governance. Furthermore, managers’ motivation to misreport is significantly more pronounced in non–state owned enterprises (non-SOEs), suggesting that equity incentive risk effects mitigate the “absence of ownership” problem believed to affect SOEs. Managers in highly competitive industries and firms with low institutional ownership are found to be highly motivated to misreport performance.

【 授权许可】

Unknown