A Study On Motives And Control Measures For Earnings Management In China's Listed Companies

Earnings management in China's listed companies has become an important factor hindering the healthy development of the stock market in our country. It is of great practical significance to analyze motives and means of earnings management and study countermeasures to control it. Starting from the concept and features of earnings management, research results of domestic and overseas experts are summarized and the basic theories of earnings management are expounded. On the basis of analyzing motives of China's listed companies to manage earnings from the respects of accounting, corporate governance, policy factor, etc., key means for managing earnings through related party transaction, various accounting methods and so on are dissected by combining with the new Accounting Standards and some related cases. Promulgation of the new Accounting Standards will have great influences on listed companies. By comparing the new Accounting Standards with the previous one, the paper explains positive roles that the new Accounting Standards will play in controlling listed companies' earnings management in the respects of preventing related party transaction, reducing the space for selecting accounting estimates and accounting policies, etc. Though it is very difficult to stop earnings management completely, effective measures can be taken in an all round way to minimize its harmfulness. Therefore, detailed control measures in the respects of reforming supervision rules, perfecting corporate governance, improving quality of accounting standards, strengthening external auditing and so on are studied,hoping that they will provide references for preventing and controlling earnings management in China's listed companies and be helpful in promoting the healthy development of the stock market in our country.