| Abstrakt: |
This study examines whether the behaviour of high-tech firms (earnings management) differs between the period immediately before certification and the period during certification. Additionally, the influence of the Chinese government's equity ownership on the earnings management tendencies of high-tech firms is examined. This study is focused on Chinese companies that are listed on the Chinese stock exchange from 2009 to 2020. Empirical analyses, including descriptive statistics, correlation analysis, and regression analysis, were conducted to obtain the results. The two main findings are as follows: First, during the certification period, high-tech firms tend to engage in earnings-minimising activities, due to the continuous supervision and management required to meet and maintain the certification requirements imposed by the Chinese government. Second, firms with higher equity ownership by the Chinese government tend to engage in more earnings management immediately before achieving high-tech firm certification than during the certification period. This behaviour can be attributed to the differential taxation of high-tech firms and the Chinese government's intensive supervision, management, and regulation of firms. This study contributes to the literature on the impact of government supervision, management, and/or regulations on the level of earnings management activities by high-tech firms. It examines the effect of government ownership of firms and the corporate structure of hightech firms on earnings management. It also provides foreign investors with information about how high-tech firms and the Chinese government behave in terms of certification. [ABSTRACT FROM AUTHOR] |
