A Research On Earnings Management Of Chinese Listed Companies With The Change In Risk Rating

Earnings management is mainly based on the formation of the existence of fiduciary responsibility, debt bound by the contract, reasonable tax considerations, to avoid huge political cost. Accounting standards, the flexibility of delay, and the cost-effective provided the possibility of earnings management.Looked from the present situation of domestic research, the majority of research all are link to China's reality in the overseas model research to launch the real diagnosis research. Our country mainly concentrates on research in following several aspects: IPO Corporation in order to do the financial packing carries on the earnings management; the listed company in order to obtain the right of distribution of shares carries on earnings management; the listed company which loses money carries on the earnings management; the ST listed company carries on the earnings management in related years, and so on. However, in our country there are not yet the scholar who had carried on earnings management based on the debt contract constraint and credit rating change for the motive.Thus based on this background, this article introduced the credit rating,carries on the real diagnosis to study earnings management of listed company which the credit rating changed as the earnings management motive. First, this article introduced the selected topic background of paper, the related domestic and foreign correlation research tendency and the research content about earnings management and the credit rating, through thorough analysis about the production foundation of earnings management and the change of credit rating, then have studied the relationship between the change of credit rating and the earnings management, and theoretically found the motive of listed company which has changed credit rating carry on the earnings management.Then the article using Zhang Ling Z value distinguished the model calculates the credit rating of listed company, by continually, above but the year or 2 years the time credit rating changes suddenly for the congenial level in the next year to the investment level of listed company for studies the sample, then the article utilize four overall Total Accruals profit model including the expansion Jones model to studies the sample in the credit rating change whether had carry on the earnings management. Through the real diagnosis studies of Chapter 4, the article basically has found the action evidence of listed company which changed the credit rating had managed its earnings.