Research On Company's Earning Management With Accounting Policy Choice

Earnings management is an enterprise in the use of certain accounting methods and means for the realization of their own utility maximization and the maximization of corporate value made to the accounting choice behavior. Choice of accounting policies and earnings management ties, there is a certain commonality; both are the main business management authorities, the spatial extent of all that is lawful under the premise of compliance. Although the choice of accounting policies to achieve the purpose of earnings management, but not all of the accounting policy choices relate to earnings management, but also not all of the earnings management are related to the accounting policy choices. Earnings management is an important way of accounting policy choices, but the results of the accounting policy choices will affect corporate earnings. Analysis of the use of empirical methods to use to confirm sales of listed companies, receivables and fixed assets depreciation approach to earnings management, drawn two major industries, there is a positive earnings management, four major industries, there is the reverse earnings management behavior. Analysis of corporate earnings management can be a deeper level understanding of the usefulness of accounting earnings and accounting practices of the formation mechanism, and further validation of the economic consequences of accounting practices and accounting earnings information content, thus helping to improve the regulatory policies and accounting standards, improving corporate governance, enhance the market allocation of resources.