The Study Of Relationship Between The Earnings Managing Of Listed Companies And Managers' Equity Incentives

The domestic study of earnings management motives are most focus on the capital market motive, including IPO Motivation, there is few studies earnings management services for the management of the behavior of equity incentives themselves. Based on this, after the implementation of "Administration Division for the Listing Company Equity Incentive Measures " two years later, this study focuses on the relationship between the earnings managing of listed companies and managers'equity incentives. This study include two periods, the first period is one year before the announcement of equity incentive, the second period is one year before the first exercise of the equity incentive. We can see the companies'managers how to control the earnings of company to serves their own interests.The study based on theory and literature, first through logical analysis, the study of theory of logical analysis of issues and proposed the corresponding hypotheses, and through empirical research methods, to confirm hypotheses proposed. Study found that in the equity incentive year before the announcement date, there is no significant difference exists between samples of the companies which do equity incentive and the matching sample companies while equity incentive equity incentive companies in the sample prior to the date of return, and accruals profits are not Significant correlation. Study found that in the equity incentive year before the first exercise date, there is no significant difference exists between samples of the companies which do equity incentive and the matching sample companies while equity incentive equity incentive companies in the sample prior to the date of return, and accruals profits are not Significant correlation.Therefore, the following conclusions: 1, the implementation of equity incentive companies in the days before the announcement, no significant evidence of earnings management by means of the management of the secondary market price to obtain more favorable exercise price; 2, the implementation of equity incentive companies in the days before the first exercise date, no significant evidence of earnings management by means of the management of the secondary market price to obtain higher exercise price; 3, the implementation of equity incentive for companies of earnings management and corporate relationship between the nature of the implementation of incentive stock options relative to the state-owned enterprises private enterprises, with a higher level of earnings management.Based on this, research suggests that equity incentives should be strengthened in the implementation of equity incentive for private enterprise accounting and auditing work.