Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 2017 Mingda Liu
The Chinese economy went through significant reforms in the past few decades but remains highly politicized to this day. The financial reporting environment is also predominantly opaque, being correlated with low accounting quality of firms. A key measure to observe is earnings quality. I test and compare the earnings smoothing, managing towards targets, and timely loss recognition earnings management behaviors between politically connected and unconnected firms listed in China. Based on the empirical results, I find that the politically connected firms engage in a higher degree of earnings management and thus have lower earnings quality.
Liu, Mingda, "The Link Between Firms' Political Connections and Earnings Quality: Evidence from China" (2017). CMC Senior Theses. 1682.
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