Research On The Effect Of New Accounting Standards On Earnings Management

Earnings management is always an important research subject in many spheres of fiscal and economic. Lots of research results have proved that earnings management is very popular in our securities business. In order to guarantee the validity of the accounting information, the Ministry of Finance enacted new accounting standards in 2006. It's composed of one ground rule and thirty-eight specified accounting standards. Many scholars had studied it, the most important question is that whether the new accounting standards are useful to reduce earnings management. And does new accounting standards is the best one that we saw before? So we write this paper to testify that we can use accounting standards to control earnings management. This empirical research is about the effect of the new accounting standards on earnings management, and it can provide some datas for the construction of the accounting standards in China.In this article, we discussed the basic theory of earnings management and accounting standards firstly. Secondly, we used some cases to research the shortcomings of the old accounting standards, and to testify that publish the new accounting standards is necessary. In part five and part six of this paper, the results of the empirical research tell us that the new accounting standards are better than the old ones. But in some industries the results are not very remarkable. We should find the reasons to resolve them. Finally, accounting to the results of the empirical research, we can table some proposals to carry out the new accounting standards, and set up a perfect accounting standards system. If we lay emphasis on accounting standards, the accounting information will be more useful and the earnings management of the listed companies must be reduced.