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

Abstract

This study examined the impact of earnings management on capital structure decision-making from the perspective of accounting information quality, using LONGi Green Energy Technology Co., Ltd. as a representative case for in-depth analysis. The research aimed to comprehensively and systematically reveal whether different types of earnings management behaviors— earnings management through accounting estimates, earnings management through operating activities, income smoothing management, and target-oriented earnings management—affected accounting information quality, thereby influencing corporate capital structure decision-making, as well as the intrinsic connections and underlying mechanisms among these factors.
Based on relevant financial theories and empirical research findings, the study constructed an integrated analytical model that incorporated various types of earnings management, indicators of accounting information quality, and variable related to capital structure decision-making. The research hypotheses and model were rigorously tested. Specifically, the study analyzed the distinct effects of four core independent variables—earnings management through accounting estimates, earnings management through operating activities, income smoothing management, and target-oriented earnings management—on capital structure decision-making.
A quantitative research approach was adopted, with data collected through questionnaire surveys. A total of 400 questionnaires were distributed, and 328 valid responses were collected, resulting in an effective response rate of 82.0%. During data processing and analysis, multiple statistical methods and analytical tools were employed to ensure the accuracy and reliability of the findings. The results indicated that earnings management through accounting estimates, earnings management through operating activities, income smoothing management, and target-oriented earnings management all had significant impacts on the capital structure decision-making of LONGi Green Energy Technology Co., Ltd.
Based on these findings, 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.

Keywords: earnings management, capital structure decision-making, LONGi Green Energy Technology Co., Ltd, earnings management through accounting estimates, earnings management through operating activities, income smoothing management, target-oriented earnings management.

6717195424 Liao Wuhong , 2568 (2025), Advisor: ดร.จิดาภา ชลธารรัตนพงศ์ – Dr. Jidapa Chollathanrattanapong, สารนิพนธ์ (Independent Study), 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, ตีพิมพ์ในวารสาร (Journal Name): Modern Academic Development and Promotion Journal, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, International Business Management, Siam University, Bangkok, Thailand – มหาวิทยาลัยสยาม กรุงเทพมหานคร ประเทศไทย