Research On Auditing And Earnings Management Of Chinese Listed Companies

There have been more than 20 years since the western financial academics paid special attention to the research of earnings management. With the development of securities business, the issue has becomes one of the significant topics of today's positive accounting research in China.There are many types of method of earnings management, and intentions of earnings management are inequable. Among methods of earnings management, the main method is accounting changes in Chinese listed companies. There are many reasons of the existing earnings management, the main reason is Principal-Agency. The deficiencies of corporate governance of Chinese listed companies provide roomage for earnings management. The main problem of corporate governance is owmership structure, which is important to earnings management. We classified earnings management according to different intentions. They are: income smoothing, inducing earnings management and taking a big bath in Chinese listed companies. And then, our question is (1) whether the CPA can distinguish the direction of earnings management; (2) whether the CPA set different materiality criterion; (3) what is the main factor of the determinants of audit opinions. Some researches have carried through, for it is useful in theory and practice.This dissertation researched earnings management using accounting changes, adopting theoretical and empirical analysis. It is finding the impact of corporate governance and reasons of the existing earnings management by theoretic analysis, at the meantime; the owmership structure is also tested in hypotheses of empirical study. The main content and results of this dissertation are as followed.In the second chapter, this dissertation theoretically studied theory of earnings management. It mainly analyzed earnings management's methods using accounting changes. The research established the structure for the following empirical research.In the third chapter, this dissertation demonstrated the theory of corporate governance which is closely related with earnings management. Then based on the framework of the external and internal governance structure, from the point of theoretical analysis, it set a game model between the manager and the supervisor and discussed the relationship between corporate governance structure and earnings management of listed companies. Furthermore the paper continues to analyze the...