Digital transformation and earnings management via subsidiaries

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-06-04 DOI:10.1016/j.frl.2025.107733

Xueman Xiang , Biao Yi

引用次数: 0

Abstract

This study examines how corporate digital transformation (DT) affects earnings management via nonwholly-owned subsidiaries (EMNWS). The findings indicate that DT increases EMNWS by intensifying managerial pressure to meet performance targets and reducing the cost of implementing EMNWS. This effect is more pronounced when EMNWS yields higher net profits, in nonstate-owned enterprises, under weak local regulatory environments, and during economic upturns. Moreover, firms avoid accrual-based, real earnings management, and classification shifting in favor of EMNWS. These results reveal a previously underexplored downside of DT: its role in enabling EMNWS.

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数字化转型和子公司盈余管理

本研究探讨了企业数字化转型（DT）如何通过非全资子公司（EMNWS）影响盈余管理。研究结果表明，DT通过增加管理层压力以达到绩效目标和降低实施EMNWS的成本来增加EMNWS。当EMNWS产生更高的净利润时，在非国有企业中，在地方监管环境薄弱的情况下，以及在经济好转期间，这种影响更为明显。此外，企业避免了权责发生制、真实盈余管理和分类转移，转而采用EMNWS。这些结果揭示了以前未被充分探索的DT的缺点：它在实现EMNWS中的作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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