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Does State-Owned Capital Manipulate Earnings Responses in China?
International Business School, Beijing Foreign Studies University, Beijing, China
International Business School, Beijing Foreign Studies University, Beijing, China
- 1 International Business School, Beijing Foreign Studies University, Beijing, China
- 2 International Business School, Beijing Foreign Studies University, Beijing, China
Journal of Mathematical Finance·Volume 06 (2016)·Pages 685–698·Published 10 November 2016·DOI10.4236/jmf.2016.65048
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Abstract
This paper analyzes the relation between state-owned capital factor and earnings quality through Earnings Response Coefficient (ERC) in Chinese stock markets. Our research finds that the ERC is significantly associated with the role state-owned capital plays in the equity structure of the companies in Chinese stock markets. Further analysis indicates that companies controlled by state-owned capital tend to have a better earnings quality.
KeywordsState-Owned CapitalERCEquity StructureEarnings Quality
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