IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v89y2026ics1544612325025875.html

Information disclosure, corporate financialization, and earnings management

Author

Listed:
  • Chen, Silin
  • Wu, Junxian

Abstract

This study investigated the relationship between information disclosure, corporate financialization, and earnings management using a panel of Chinese listed companies spanning 2015–2023. Notably, higher levels of information disclosure were significantly associated with lower degrees of earnings management, while higher levels of corporate financialization intensified earnings manipulation. Moreover, corporate financialization exerted a significant moderating effect on the relationship between information disclosure and earnings management, weakening disclosure’s governance. Moderating effect analysis demonstrated regional heterogeneity, which is more pronounced in regions with low marketization. By integrating perspectives from agency theory and corporate governance, this research provided new insights into how financialization reshapes the effectiveness of external monitoring mechanisms. The study findings enrich the literature on the governance effects of information disclosure and provide empirical evidence for enhancing regulatory frameworks to ensure financial transparency for mitigating the shift of firms from the real economy to the speculative virtual economy.

Suggested Citation

  • Chen, Silin & Wu, Junxian, 2026. "Information disclosure, corporate financialization, and earnings management," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025875
    DOI: 10.1016/j.frl.2025.109338
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325025875
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.109338?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025875. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.