摘要：This paper examines the effects of the relationship between suppliers and customers on a company's earnings management and the effects of accrual-based and real activities earnings management on the capital expenditure of a company. We also examine the influence of the bargaining power of major customers on earnings management and how this bagaining power intervenes in the relationship between capital expenditure and earnings management.When the bargaining power of major consumers is measured by the HHI index, the result shows that the higher the capital expenditure of a company, the greater the compnay's accrual earning managemet. If the bargaining power of major customers is measured at the thresholds of 5% and 10% of sales percentage, the higher the capital expenditure, the greater the real earnigs management. The stronger the bargaining power of major customers, the larger the real activities and accrual-based earnings management of the company. Moreover, there is a causal relationship between capital expenditure and earnings management. The bargining power plays an important role in the relatinship between earnings management and capital expenditure.
