Whether Cost Stickiness Stimulates the Occurrence of Financial Reporting Fraud? Evidence in the Digital Economy Background

Yingke Zhao

2022

Abstract

In the context of the rapid development of digital economy technology, more and more Chinese enterprises have started to carry out digital reform. This paper attempts to study the impact of cost stickiness on financial reporting fraud based on the environment of digital economy development. Through the empirical analysis of rare event regression model, it is found that there is a significant positive relationship between cost stickiness and financial reporting fraud. Meanwhile, this paper finds that government subsidies can play a significant inhibited role in above relationship. It is worth mentioning that firms with higher digitalization are less likely to experience financial reporting fraud, even with higher cost stickiness. The harmful relationship is weakened by digital. The results show that enterprises should pay attention to the level of cost stickiness and promote digitalization actively.

Paper Citation

in Harvard Style

Zhao Y. (2022). Whether Cost Stickiness Stimulates the Occurrence of Financial Reporting Fraud? Evidence in the Digital Economy Background. In Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME; ISBN 978-989-758-636-1, SciTePress, pages 301-309. DOI: 10.5220/0012029900003620

in Bibtex Style

@conference{icemme22,
author={Yingke Zhao},
title={Whether Cost Stickiness Stimulates the Occurrence of Financial Reporting Fraud? Evidence in the Digital Economy Background},
booktitle={Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME},
year={2022},
pages={301-309},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012029900003620},
isbn={978-989-758-636-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME
TI - Whether Cost Stickiness Stimulates the Occurrence of Financial Reporting Fraud? Evidence in the Digital Economy Background
SN - 978-989-758-636-1
AU - Zhao Y.
PY - 2022
SP - 301
EP - 309
DO - 10.5220/0012029900003620
PB - SciTePress