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Academic Journal of Business & Management, 2020, 2(1); doi: 10.25236/AJBM.2020.020109.

Impact of Debt Financing on Real Earnings Management


Fengchen Qin

Corresponding Author:
Fengchen Qin

School of Management, Shanghai University, Shanghai 200444, China
[email protected]


Earnings management and debt financing are two hot topics in the financial markets. Based on the literature about the impact of existing debt financing on earnings management motivation, this paper attempts to distinguish the degree of debt financing of the company. The previous literature on this issue has been limited to the study of the earnings management of correspondent projects. Based on the previous literature, this paper extends the perspective to the practice of earnings control in real activities, which has been studied more and more by international academic circles in recent years. Specifically, based on the theoretical analysis, this paper uses the data of Chinese listed companies (from 2008 to 2018) to carry out empirical work on the impact of debt financing on real earnings management. First of all, this paper studies the effect of debt financing on real earnings management from the perspectives of all listed companies. Secondly, this paper further plans the degree of debt financing, discusses the impact of debt financing on real earnings management when debt financing is insufficient and debt financing is overdone. It is found that debt financing will have different effects on the real earnings management due to different degrees.


Real Earnings Management, Insufficient Debt Financing, Excessive Debt Financing

Cite This Paper

Fengchen Qin. Impact of Debt Financing on Real Earnings Management. Academic Journal of Business & Management (2020) Vol. 2, Issue 1: 77-85. https://doi.org/10.25236/AJBM.2020.020109.


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