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Do bullet trains affect earnings management? Evidence from China

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  • Li, Bin
  • Zheng, Wen
  • Ma, Chen

Abstract

This study focuses on the relationship between bullet trains and earnings management in geographically diverse companies in China by using a sample of Chinese listed companies from 2008 to 2015. The estimation results show that bullet trains assist in mitigating earnings management in the subsidiaries of geographically diverse companies. The evidence is robust to alternative discretionary accrual measures, alternative control variables definitions, and regression method changes.

Suggested Citation

  • Li, Bin & Zheng, Wen & Ma, Chen, 2019. "Do bullet trains affect earnings management? Evidence from China," Finance Research Letters, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:finlet:v:31:y:2019:i:c:s1544612318302836
    DOI: 10.1016/j.frl.2018.12.027
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    References listed on IDEAS

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    Cited by:

    1. Ma, Guangyuan & Wang, Yihong & Xu, Yekun & Zhang, Limin, 2023. "The breadth of ownership and corporate earnings management," Finance Research Letters, Elsevier, vol. 52(C).

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    More about this item

    Keywords

    Bullet trains; Earnings management; Geographic diversification;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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