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Can I read GDP manipulation, political incentives, and earnings management on EtoBox?
GDP manipulation, political incentives, and earnings management by Guilong Cai; Xiaoxia Li; Bingxuan Lin; Danglun Luo is a Business, Management and Accounting article available to read on EtoBox.
What is GDP manipulation, political incentives, and earnings management about?
Political decisions often affect macroeconomic activity, which triggers effects on corporate decisions. Using satellite night light data to proxy for economic activity, we show that manipulation of GDP figures is associated with earnings management by local companies, especially when local politicians face more promotion pressure. We show that local politicians seeking career advancement exchange favors with local companies and pressure them to inflate earnings to increase local GDP numbers. Our findings illustrate how the macro-level political agenda and GDP manipulation can affect micro-level corporate earnings management.
Who reads GDP manipulation, political incentives, and earnings management?
It is typically read by researchers, students, and practitioners in Business, Management and Accounting.
- Author
- Guilong Cai; Xiaoxia Li; Bingxuan Lin; Danglun Luo
- Publisher
- Elsevier BV
- Published
- 2022
- Language
- EN
- Field
- Business, Management and Accounting (Social Sciences)
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