Study On Cause And Normalization Countermeasures Of Earnings Management Of Domestic Listed Companies

Since the 1990s, the problem of earnings management in the capital market is getting worse and earnings management have become "number games", causing serious hazard to the credibility of accounting information and the operation of capital market. Nowadays, most of the domestic researches on earnings management are empirical verification of its motivation. Combining normal and empirical methods together, the thesis researches on earnings management systematically from three aspects—how earnings management comes into being, what means are used in earnings management, and how to restrict earnings management.This paper, based on the concept of earnings management, compared it with those of financial fraud and selection of accounting policies. Analysis of merits and drawbacks of earnings management, which combined practical conditions in China, suggested that earnings management be normalized instead of being put aside. Following the problem, this paper derived several reasons including general and specific ones for domestic listed companies to...