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  4. Vol 4, Issue 1, 2022

Meeting Dividend Thresholds through Real Earnings Management of Listed Banks in China: the Perspective of Manipulate Real Activities

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DOI: 10.23977/acccm.2022.040107 | Downloads: 25 | Views: 805

Author(s)

Zhenjia Liu 1

Affiliation(s)

1 School of Accounting and Finance, Tan Kah Kee College, Xiamen University, Xiamen, China

Corresponding Author

Zhenjia Liu

ABSTRACT

Dividend distribution influences corporate operating decisions, and the prior year's dividends represent an earnings threshold. The purpose of this study was to clarify perceptions regarding the manipulation of income toward a desired earnings goal (i.e., dividend threshold). In this study, data from 2009 to 2020 were collected from the CSMAR database. A regression model was adopted to analyze the manipulation of income toward a dividend threshold (i.e., desired earnings goal) among China's listed banks. The empirical results show that managers of listed China banks not tend to meet or exceed dividend thresholds through manipulating operating cash flows, cost of goods sold, discretionary expenditures.

KEYWORDS

Dividend thresholds, Earnings management, China, Banks

CITE THIS PAPER

Zhenjia Liu, Meeting Dividend Thresholds through Real Earnings Management of Listed Banks in China: the Perspective of Manipulate Real Activities. Accounting and Corporate Management (2022) Vol. 4: 39-51. DOI: http://dx.doi.org/10.23977/acccm.2022.040107.

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