Abstract: Using the data of A-share listed companies in SSE and SZSE from 2008 to 2014, this paper verified the stimulation and trigger mechanism from the earnings management by enterprise R&D, and tried to discuss the adaptive behavior of micro-enterprises to macroeconomic policies in the view of earnings management. We find that the enterprise R&D investment stimulates the enterprise earning management, and the bigger the enterprise earning management is made, the more financial and tax support the enterprises will obtain, and the enterprise with higher R&D investment will have higher degree of sensitivity. We also find that greater R&D intensity has a stronger positive effect on earnings management on governmental subsidy (tax preference). However, the earnings management does not affect the promoting role to the value of the enterprise.

Key words: R&D investment, earnings management, government subsidy, tax preference