The Impact of Artificial Intelligence on Enterprises' Accrual Earnings Management

Based on the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2022, this paper explores the impact and mechanism of artificial intelligence on the management of accrued surplus of listed companies. The empirical results show that artificial intelligence can inhibit accrual earnings management. It is further found through the mediation effect test that AI suppresses accrual earnings management by alleviating financing constraints and reducing management expense ratio. Finally, the results of heterogeneity analysis show that AI can inhibit the level of accrual earnings management in both state-owned and non-state-owned enterprises, but the inhibitory effect is more significant for enterprises in the eastern region.