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Social insurance and earnings management: Too rich to be good
We examine the relationship between social insurance contributions and earnings management for publicly listed firms in China. Our empirical results show that the social insurance contributions burden significantly reduces the degree of earnings management by reducing the level of free cash flow. Ad...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Frontiers Media S.A.
2022
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Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9628673/ https://www.ncbi.nlm.nih.gov/pubmed/36337519 http://dx.doi.org/10.3389/fpsyg.2022.934516 |
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author | Bai, Yunxia Zhang, Bofu |
author_facet | Bai, Yunxia Zhang, Bofu |
author_sort | Bai, Yunxia |
collection | PubMed |
description | We examine the relationship between social insurance contributions and earnings management for publicly listed firms in China. Our empirical results show that the social insurance contributions burden significantly reduces the degree of earnings management by reducing the level of free cash flow. Additionally, the negative relation between social insurance contributions burden and earnings management is more pronounced when the internal and external social insurance pressures are high and when the firms are large non-state-owned enterprises. We also discuss the heterogeneity among firms for different financing constraints, external financing environment, regional marketization, and internal and external corporate governance. Finally, we further find that under the dual collecting system, although the social security administration is a better collecting agency, the local tax bureau acting with full responsibility is more effective than the collecting system. |
format | Online Article Text |
id | pubmed-9628673 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Frontiers Media S.A. |
record_format | MEDLINE/PubMed |
spelling | pubmed-96286732022-11-03 Social insurance and earnings management: Too rich to be good Bai, Yunxia Zhang, Bofu Front Psychol Psychology We examine the relationship between social insurance contributions and earnings management for publicly listed firms in China. Our empirical results show that the social insurance contributions burden significantly reduces the degree of earnings management by reducing the level of free cash flow. Additionally, the negative relation between social insurance contributions burden and earnings management is more pronounced when the internal and external social insurance pressures are high and when the firms are large non-state-owned enterprises. We also discuss the heterogeneity among firms for different financing constraints, external financing environment, regional marketization, and internal and external corporate governance. Finally, we further find that under the dual collecting system, although the social security administration is a better collecting agency, the local tax bureau acting with full responsibility is more effective than the collecting system. Frontiers Media S.A. 2022-10-19 /pmc/articles/PMC9628673/ /pubmed/36337519 http://dx.doi.org/10.3389/fpsyg.2022.934516 Text en Copyright © 2022 Bai and Zhang. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms. |
spellingShingle | Psychology Bai, Yunxia Zhang, Bofu Social insurance and earnings management: Too rich to be good |
title | Social insurance and earnings management: Too rich to be good |
title_full | Social insurance and earnings management: Too rich to be good |
title_fullStr | Social insurance and earnings management: Too rich to be good |
title_full_unstemmed | Social insurance and earnings management: Too rich to be good |
title_short | Social insurance and earnings management: Too rich to be good |
title_sort | social insurance and earnings management: too rich to be good |
topic | Psychology |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9628673/ https://www.ncbi.nlm.nih.gov/pubmed/36337519 http://dx.doi.org/10.3389/fpsyg.2022.934516 |
work_keys_str_mv | AT baiyunxia socialinsuranceandearningsmanagementtoorichtobegood AT zhangbofu socialinsuranceandearningsmanagementtoorichtobegood |