THE IMPACT OF EARNINGS MANAGEMENT ON CAPITAL STRUCTURE DECISION-MAKING FROM THE PERSPECTIVE OF ACCOUNTING INFORMATION QUALITY: A CASE STUDY OF LONGI GREEN ENERGY TECHNOLOGY CO., LTD
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This study took LONGi Green Energy Technology Co., Ltd. as a case to explore how earnings management (including through accounting estimates, operating activities, income smoothing, and target-oriented approaches) affects capital structure decision-making via accounting information quality. Based on financial theories and empirical findings, an integrated analytical model was constructed and rigorously tested, analyzing the distinct impacts of four types of earnings management on capital structure decisions. Employing a quantitative approach with 400 questionnaires (82.0% valid response rate), the results revealed significant effects of all four types on the company's capital structure decisions. this study proposes strategic recommendations for LONGi Green Energy Technology Co., Ltd. and related enterprises from the perspective of enhancing accounting information quality to optimize capital structure decision-making:
(1) Strengthen the identification and monitoring mechanisms for earnings management; (2) Optimize the design of financial management and decision-making processes; (3) Enhance external information communication and transparency management.
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