Study on the Relationship between Audit Quality, Earnings Management and Investment Performance

Abstract

Based on the theory of information asymmetry, this paper takes investment performance, audit quality and real earnings management of listed companies as explained variables, explanatory variables and intermediary variables respectively, and selects the data of A-share listed companies in A total of 10 years from 2012 to 2022 as samples to study the relationship between the three. The empirical research shows that audit quality has a positive impact on the investment performance of listed companies in China, which can reduce the earnings management behavior of listed companies, and excessive earnings management behavior is not conducive to good investment performance of companies. Earnings management can play a part of intermediary effect between audit quality and investment performance. The results of this study provide reference for listed enterprises to improve investment performance and improve capital investment..