Will the Change from Four to Three Classifications of Financial Assets Lead to a Substitution of Accrual Earnings Management for Real Earnings Management?

This paper investigates the substitution between accrual earnings management and real of listed companies after change from four to three classifications financial assets in China. divides data A + H China into two groups for period 2015-2020, considering implementation Financial Instruments Standard as time point, impact on through OLS regression analysis suest test. The results study show that assets, manipulation asset derecognition by decreased, fair value measurement increased; at same time, proportion profit or loss held was significantly positively related level management.