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.

中文翻译：

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员工现金分红与盈余管理

本文研究了公司的雇佣政策，尤其是员工现金利润分享计划，如何影响其财务报告。我们发现，拥有员工现金利润分享计划的公司更有可能进行向下盈余管理以降低劳动力成本，尤其是在业绩下降的情况下。这种效应在劳动力成本较高的公司和依赖人力资本的公司中更为明显。我们的研究结果对各种模型规范和内生性问题都是稳健的。