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Financial accounting regulations, digitalization, and corporate earnings management

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  • Ren, Zhengliang
  • Nie, Peng

Abstract

Based on data from listed companies between 2014 and 2023, this study examines the relationships among financial accounting regulations, digitalization, and corporate earnings management. The results indicate a negative correlation between financial accounting regulations and the degree of earnings management. Further analysis reveals that the impact of financial accounting regulations on earnings management varies significantly across industries and regions with different regulatory environments. In addition, the level of digitalization is also negatively correlated with corporate earnings management. The effect of digitalization on earnings management similarly exhibits heterogeneity across industries and regulatory environments in different regions. Finally, digitalization plays a significant moderating role in the relationship between financial accounting regulations and earnings management. This study provides new insights into the interactions among financial accounting regulations, digitalization, and earnings management, and offers theoretical foundations and practical guidance for corporate managers and policymakers seeking to improve accounting standards and promote digital transformation.

Suggested Citation

  • Ren, Zhengliang & Nie, Peng, 2026. "Financial accounting regulations, digitalization, and corporate earnings management," International Review of Financial Analysis, Elsevier, vol. 110(C).
    • Handle: RePEc:eee:finana:v:110:y:2026:i:c:s1057521925009652
    DOI: 10.1016/j.irfa.2025.104878
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    References listed on IDEAS

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