Financial distress, political affiliation and earnings management: the case of politically affiliated private firms
研究中国政治关联民营企业的财务困境与盈余管理关系，发现困境企业更倾向报告小额正盈余，政治关联会弱化这一关系，且区域发展影响该调节效应。
Using a sample of politically affiliated private firms in China, we explore the relation between corporate financial distress and earnings management. We further examine the joint moderating effects of political affiliation and regional development on this relation. The findings suggest that financially distressed firms engage more in reporting small positive earnings relative to financially healthy firms. In addition, political affiliation weakens the association between financial distress and small positive earnings management. A three-way interaction analysis indicates that the moderating effect of political affiliation is influenced by regional development.