Research On Recognition And Countermeasures Of Improper Earnings Management Of Listed Companies

As the role of security market turns to be more and more important, the financial reports which are offered by the listed companies have been considered as the most important basis by which people make decisions. Its authenticity and justice concern the interests of each side directly, and concern the rational disposition of social resources and sound development of the capital market, therefore it makes the earnings management become the focus and attract the attention of millions of people. Earnings management itself has the positive and negative function. The appropriate earnings management can help improve accountant earnings decision-making information content, make earnings information reflect company's economic value, but in our country it is not used correctly by listed companies, its negative effect is far greater than its positive function, it has reduced the information dependability of the financial report, affected the optimal distributing resource function of capital market seriously. It has become the key factor hindering Chinese stock market development, it is an urgent problem needing to solve at present. This article elaborates the background and the significance of the research firstly, on the basis of using domestic and international achievements of earnings management of listed companies, studies the basic theories of earnings management of listed companies of our country, it researches systematically the meaning, characteristic and the influence brought by the earnings management of listed companies, and its producing conditions, etc. Secondly, it analyzes the motives of carrying on earnings management of the listed companies at different developing stage according to life cycle theory, then sets up the discernment model of earnings management and carries on demonstration studies using 158 listed companies that were showed non-standard audit opinion in 2005.Finally,it manages the countermeasures solving the problem of improper earnings management of listed companies of our country effectively according to the negative effect.