The Research On The Earnings Management Of Repeatedly Profit And Loss Company

Established in 1990,China's stock market has experienced a rapid development in the past 10 years. It has made tremendous contribution to the allocation of resource and the economy reform. However,many problems remain in the stock market. One of the most significant problems is that,loss companies increase in both number and proportion with time. What is interesting,there are many companies appear repeatedly in the list of loss company. These companies,the so called"repeatedly profit and loss company"(RPLC)constitute the subject of this dissertation.Various questions rise concerning the issue of RPLC. What causes this phenomenon? What particular characteristics these companies in contrast to others? Do these companies perform earnings management? If yes,then how? Answers will be given in this dissertation.The dissertation is made up of following parts. Firstly,related institutional background is studied,since it's the theoretic frame of the study. Secondly,we make a review of earnings management which will be further studied in the following parts. Thirdly, RPLCs are chosen through a certain process and put to descriptive statistic analysis which draws an outline of RPLCs. In the last part,the dissertation gives an empirical study on the RPLCs. Using statistics test and regression model,the dissertation conducts a test on the items below the line and the accrual earnings. Some evidence about RPLC's earnings management is made finally.