The Relationship Between Corporate Characteristics And Earnings Management Based On The Income Tax Rate Changes

As an act accounting alienation, earnings management has widespread in all the economies market and stock markets. This article had study the relationship between the company's listed common characteristics and the earnings management, when under the environmental conditions of the tax reform in China in 2008.When the tax rates had changed, this paper studies the relationship between the company's listed common characteristics and the earnings management from both theoretical and empirical aspects. Firstly, we analyzes from the earning management theory, introduce the motivation of the earnings management, which both include the financial reporting motive and the tax avoidance motive. And then give an introduction about the main methods of the earning management in the companies. At last, give three more general measure methods for the earning management. And then make the theoretical analysis for the impact of earnings management from the two factors:financial characteristics and the company's internal governance structure. The next part is the empirical test about the impact on the tax change and the relationship between the companies's listed common characteristics and the earnings management. The empirical test result shows that the profit amount that transferred by the listed companies is significantly related to the company's size and the ownership of the company, which means that the larger companies would not willing to reduce the current disclosure of accounting incomes, and the earnings management motives of non-state-owned companies are more apparent than the state-owned companies. But in the test, we can not get the conclusions that can proof the significantly relationship between the profit amount transferred by the listed companies and the financial leverage, executives shareholding and executive compensation.