Economic policy uncertainty, strategic radicality and corporate earnings management

Abstract

Using the data of all A-share listed companies in Shanghai and Shenzhen stock exchanges from 2011 to 2020 as research samples, this paper analyzes the relationship between economic policy uncertainty, strategic aggressiveness and corporate earnings management from the micro perspective of enterprises. The results of this study show that: economic policy uncertainty will reduce the radicalism of corporate strategy, the reduction of corporate strategy radicality will reduce the earnings management of enterprises, and economic policy uncertainty will reduce the earnings management of enterprises by affecting the radicalism of corporate strategy; Further research finds that compared with state-owned enterprises, non-state-owned enterprises have a more significant effect on reducing corporate earnings management by reducing the aggressiveness of corporate strategy in the face of economic policy uncertainty.