The Impact of Earnings Management on Corporate Performance under the Empowerment of Digital Transformation

Driven by the global digital economy, the relationship between corporate earnings management and performance has taken on new dynamics. This study explores how digital transformation affects corporate performance by altering the motivations, methods, and outcomes of earnings management. The research finds that digitalization enhances information transparency, reduces information asymmetry, and encourages companies to shift from short-term financial goals to long-term value creation. Digital tools optimize internal control and decision-making processes, reducing the scope for accounting manipulation. Furthermore, digital technology improves corporate risk management, mitigating the risk of performance fluctuations caused by earnings management and promoting stable and sustainable financial performance. This paper provides strategic guidance for corporate financial management in the digital environment, revealing the key role of digital transformation in enhancing corporate performance.