Corporate Strategy Difference and Earnings Management Motivation

To investigate the impact of corporate strategy differences on the value relevance of earnings management, the study use Chinese listed companies as a sample and find that the greater the degree to which a firm's strategy deviates from the industry's conventional model, the lower the value relevance of the discretionary accruals. This indicates that the greater the degree of strategic difference, the motivation of enterprises to engage in earnings management is more likely to be opportunistic rather than signal transmission. This research has some enlightening significance to identify the value relevance of earnings management.