The Studies On Earnings Management Of Listed Companies In Our Country

Earnings management is one of the important areas of modern financial accounting research. The foreign accounting researchers have being studied it for more than twenty years. With the development of China securities market, earnings management turned up in listed companies, which has become one of the new subjects of accounting theory and practice in our country. Earnings management has positive and negative effect on our economy. However. Earnings management has been abused to such an extent in listed companies in our country that its negative effect exceeds its positive effect considerably. It has been a problem that should be solved immediately. The paper applies normative research method to study several problems of earnings management of listed companies based on the existed research results from domestic and foreign scholars. The basic framework of the thesis is as follows:Chapter one introduces the fundamental theory of earnings management. Firstly, it illustrates the conception of earnings management, in which earnings management and profit control was differentiated, point out earnings management must be existed in market economy, then expatiating on characters and qualities of earnings management. Secondly, it analyzes the motive for earnings management and the precondition of earnings management.Chapter two analyzes the peculiar situation of listed companies in our country. In the beginning, the motive of earnings management peculiar to China is introduced. Then, it discusses the common ways of earnings management in listed companies.Chapter three it illustrates the consequence of earnings management through theory analysis combined with case analysis.Chapter four several suggestions were raised according to the strong motivation of earnings management and the widespread phenomena of earnings management.