The Impact of QFII Shareholding of Listed Companies on Earning Management

摘要

This paper is based on the theory of real earnings management, considering whether QFII become the top ten shareholders of listed companies as the breakthrough to establish the theoretical model. We collected data of A-share listed companies from 2013 to 2015 in stock exchange of Shenzhen and Shanghai as samples for empirical research. The results show that when the QFII reach a certain shareholding ratio, they will participate in corporate governance and restrain earnings management, especially the real earnings management. On the other hand, accrued earnings management has an alternative effect on real earnings management that when real earnings management is suppressed, corporates will shift to accrued earnings management. This paper has great significance on improving and developing QFII system, improving corporate governance and protecting the interests of small and medium investors.