Annual Report Readability and Earnings Management: Evidence from Chinese Listed Companies

DOI

10.2991/icsshe-18.2018.199How to use a DOI?

Keywords

earnings management, annual report readability, management discussion and analysis (MD&A)

Abstract

This paper attempts to find the connection between earnings management and the readability of annual reports. We use STATA15.0 to search data of China's stock market annual report from 2012 to 2016. This study is based on 1163 listed companies in China stock market, and use Software developed by s Taiwan scholars, it can generate a FOG INDEX assessing the readability of the annual report. We measure earnings management using the modified Jones model and adjusted cash flow accounting. The results show a significant positive correlation between manipulative accruals and the FOG INDEX.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jinfeng Cheng
AU  - Jixin Zhao
AU  - Chang Xu
AU  - Haocheng Gong
PY  - 2018/09
DA  - 2018/09
TI  - Annual Report Readability and Earnings Management: Evidence from Chinese Listed Companies
BT  - Proceedings of the 2018 4th International Conference on Social Science and Higher Education (ICSSHE 2018)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/icsshe-18.2018.199
DO  - 10.2991/icsshe-18.2018.199
ID  - Cheng2018/09
ER  -