Abstract
Once privatised, SOEs are operating in a market with free competition; their reported earnings become an important indicator of the enterprise's operational performance. The degree of control that the state is able to exert over the company will diminish after privatisation. The concentrated ownership structure and the strong political and economic connections between the government and listed companies are the main causes of earnings management in China.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have