Overseas listing and earnings management methods selection

Abstract

This paper examines how management manipulates earnings from accrual earnings management to real earnings management after a firm's listing abroad. Using Chinese firms listed overseas, we find that overseas listing inhibits accrual earnings management and induces firms to use production and expense manipulation to increase real earnings management; private firms' overseas listing induces them to implement more real earnings management; firms with low multinational operations' overseas listing induce them to implement more real earnings management; and the overseas listing of low multinational enterprises induces them to implement more real earnings management.