---
_id: '47919'
abstract:
- lang: eng
  text: <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>
author:
- first_name: Zhi
  full_name: Wang, Zhi
  last_name: Wang
- first_name: Geert
  full_name: Braam, Geert
  last_name: Braam
- first_name: Daniel
  full_name: Reimsbach, Daniel
  id: '100169'
  last_name: Reimsbach
- first_name: Jiaxin
  full_name: Wang, Jiaxin
  last_name: Wang
citation:
  ama: 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>
  apa: 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>
  bibtex: '@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}
    }'
  chicago: '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>.'
  ieee: '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>.'
  mla: 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>.
  short: Z. Wang, G. Braam, D. Reimsbach, J. Wang, Accounting &#38;amp; Finance 60
    (2020) 4723–4755.
date_created: 2023-10-10T10:01:10Z
date_updated: 2023-10-30T11:34:31Z
department:
- _id: '186'
- _id: '815'
doi: 10.1111/acfi.12690
intvolume: '        60'
issue: '5'
keyword:
- Economics
- Econometrics and Finance (miscellaneous)
- Finance
- Accounting
language:
- iso: eng
page: 4723-4755
publication: Accounting &amp; Finance
publication_identifier:
  issn:
  - 0810-5391
  - 1467-629X
publication_status: published
publisher: Wiley
status: public
title: Political embeddedness and firms’ choices of earnings management strategies
  in China
type: journal_article
user_id: '21810'
volume: 60
year: '2020'
...