Earnings Managemen Perspective

Presently, the newly reference to the measure property of fair value and the increasingly payment of the advanced manager has becoming the peculiar items in the research of earning management. The research focus on those peculiar items that can provide manager with incentives and opportunities in earning management will help to complete the monitoring mechanisms and restrict the earning management behavior, ensuring the effective operation of the market. In this paper, the research of earning management was conducted based on two factors, the payment of the advanced manager and the fair value, combining the method of theory research and the example analysis, in order to better understanding and researching the earning management behavior, compressing the space of earning management so that to limit the behavior the earning management in the listed companies.In Chapter-1, the background of the research topic was put forward and the related research references were reviewed. In Chapter-2, the basic theory on earning management was expatiated. Further, the relationship of manager payment and earning management and as well as the relationship of fire value and earning management was explained in Chapter-3 and Chapter-4. In Chapter-5, the example analysis was conducted and the proposed theory was also demonstrated according to the collecting data of some listed companies. Finally, based on the research result, some plans and suggestions on the policy making of the inspired manager payment and the effective applying of fire value were proposed in Chapter-6. The research result indicated that, there was a positive relationship between manager payment, fair value and the earning management, while the relationship between the long inspire policy of manager payment and the earning management was unclear, which proved that the manager had the motivation to conduct the earning management by making use of the fair value, for their maxima benefits. Suggest to complete the inspire policy of payment and the monitoring mechanisms, and the long inspire policy of payment should according to the practical condition of our country instead of imitating foreign countries simply. The inspire policy should be applied step by step, with the completed monitoring mechanisms both in and outside, which can play its role respectively. For the fair value, the apply environment should be modified and the applying process should be specified. Since the measurement of fair value related to subjective judgment, the professional knowledge and career moral of accountants should also be encouraged.The highlights of this paper are as follows:①the research of earning management was conducted based on both two factors, the payment of the advanced manager and the fair value. The possible motivations and methods were analysis completely.②Not only focus on the affect of the efficient inspire payment policy, but also focus on the complete monitoring mechanisms. Emphasis that although the policy is well designed, it will not be applied successfully without effect monitoring mechanisms.