article published Zhi Wang author Geert Braam author Daniel Reimsbach author 100169 Jiaxin Wang author 186 department 815 department <jats:title>Abstract</jats:title><jats:p>We examine whether and how political embeddedness influences financial reporting quality in China by investigating how government ownership and political connections affect Chinese listed firms’ choices of earnings management strategies. The results show that state‐owned enterprises (SOEs), and in particular, central SOEs, are more likely to substitute accrual‐based earnings management strategies with costlier but less detectable real earnings management strategies than non‐SOEs. The results also indicate that politically connected enterprises (PCEs) are more likely to employ less detectable real earnings management strategies than non‐PCEs, so much so that PCEs’ total earnings management level is higher than that of non‐PCEs.</jats:p> Wiley2020 eng EconomicsEconometrics and Finance (miscellaneous)FinanceAccounting 0810-5391 1467-629X10.1111/acfi.12690 6054723-4755 Wang, Zhi, et al. “Political Embeddedness and Firms’ Choices of Earnings Management Strategies in China.” <i>Accounting &#38;amp; Finance</i>, vol. 60, no. 5, Wiley, 2020, pp. 4723–55, doi:<a href="https://doi.org/10.1111/acfi.12690">10.1111/acfi.12690</a>. @article{Wang_Braam_Reimsbach_Wang_2020, title={Political embeddedness and firms’ choices of earnings management strategies in China}, volume={60}, DOI={<a href="https://doi.org/10.1111/acfi.12690">10.1111/acfi.12690</a>}, number={5}, journal={Accounting &#38;amp; Finance}, publisher={Wiley}, author={Wang, Zhi and Braam, Geert and Reimsbach, Daniel and Wang, Jiaxin}, year={2020}, pages={4723–4755} } Z. Wang, G. Braam, D. Reimsbach, J. Wang, Accounting &#38;amp; Finance 60 (2020) 4723–4755. Wang, Z., Braam, G., Reimsbach, D., &#38; Wang, J. (2020). Political embeddedness and firms’ choices of earnings management strategies in China. <i>Accounting &#38;amp; Finance</i>, <i>60</i>(5), 4723–4755. <a href="https://doi.org/10.1111/acfi.12690">https://doi.org/10.1111/acfi.12690</a> Wang, Zhi, Geert Braam, Daniel Reimsbach, and Jiaxin Wang. “Political Embeddedness and Firms’ Choices of Earnings Management Strategies in China.” <i>Accounting &#38;amp; Finance</i> 60, no. 5 (2020): 4723–55. <a href="https://doi.org/10.1111/acfi.12690">https://doi.org/10.1111/acfi.12690</a>. Z. Wang, G. Braam, D. Reimsbach, and J. Wang, “Political embeddedness and firms’ choices of earnings management strategies in China,” <i>Accounting &#38;amp; Finance</i>, vol. 60, no. 5, pp. 4723–4755, 2020, doi: <a href="https://doi.org/10.1111/acfi.12690">10.1111/acfi.12690</a>. Wang Z, Braam G, Reimsbach D, Wang J. Political embeddedness and firms’ choices of earnings management strategies in China. <i>Accounting &#38;amp; Finance</i>. 2020;60(5):4723-4755. doi:<a href="https://doi.org/10.1111/acfi.12690">10.1111/acfi.12690</a> 479192023-10-10T10:01:10Z2023-10-30T11:34:31Z