Employee Cash Profit-Sharing and Earnings Management
研究发现，实施员工现金利润分享计划的企业更倾向于进行向下的盈余管理以降低劳动力成本，尤其在业绩下滑时，且该效应在劳动力成本高和依赖人力资本的企业中更显著。
This paper examines how a firm’s employment policy, particularly employee cash profit-sharing plans, affects its financial reporting. We find that firms with employee cash profit-sharing programs are more likely to engage in downward earnings management to reduce labor costs, especially with decreasing performance. This effect is more evident in firms with higher labor costs and human-capital reliant firms. Our findings are robust to a variety of model specifications and endogeneity problems.