Is the Differentiated Information Disclosure System Effective?——Evidence from Earnings Management Behaviors under Hierarchical System of National Equities Exchange and Quotations
After the release of"information disclosure rules for the companies listed on National Equities Exchange and Quotations(NEEQ)",the NEEQ companies need to fulfill differentiated information disclosure rules according to the tiers they belong to,of which the innovation level companies are subject to stricter supervision.Taking this policy implementation as a research opportunity,this paper empirically examines the effect of differentiated information disclosure system on earnings management behaviors.The findings show that this system had significantly alleviated earnings management be-haviors of innovation level companies,compared with basic level companies.Further analyses show that such effect is more significant when the firm size is smaller,the stock liquidity is lower,the regional institution is more imperfect or the industry competition is less fierce.The possible channels through which the differentiated information disclosure system reduces earnings management is improvement of market attention and alleviating of financing con-straints.This system has some spillover effects,which can restrain the earnings management of basic level companies in the same industry or the same province as innovation level companies.This study demonstrates that it is reasonable for regulators to formulate differentiated information disclosure policies according to the features of different layers.Moreover,it also provides valuable policy insights into deepening reforms of the New Third Board System and fostering the healthy development of small and medium-sized enterprises.
Differentiated Information DisclosureNEEQEarnings ManagementSpillover Effect
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