The Earnings Managing Of Listed Companies With Managers' Equity Incentives

In the study of domestic earnings management motive,most of them make the capital market as the central,thus derived from the research to related motivation.A few of them from the perspective of compensation contract to study,and about the management of equity-based incentives and earnings management literature is even less.Based on this,after The Management Guidelines Methods of Equity-based Incentives by Listed Companies,this article study the implementation of the management equity incentive companies' earnings management,and study whether the existence of the earnings management of our equity-based incentive to meet the right conditions in the future,as well as the Board of Directors' role.Based on a great amount of related literatures and combined with the practical situations, the article start with the logic analysis,then make the demonstration studies about them.The research obtains:In the base year of the management equity incentive program,the company's subjective accruals samples was significantly lower than the match company'.The extent of earnings management and the extent of equity-based incentives is significantly correlated.The number of meetings of Board of Directors and the extent of earnings management is significantly association.The number of the Board of Directors and the extent of earnings management is a significant negative correlation.The conclusion can be arrived as followed:1.The companies which implement equity-based incentives,will make earnings management in the base year of equity incentive program to success to meet the exercise conditions in the future.2.With the greater degree of equity-based incentives,the greater degree of earnings management.3.The number of meetings the board of directors is more,and the extent of earnings management can be less.4.With the expansion of the size of the board of directors,the inhibit role of earnings management is the smaller.Based on this,we wish the article can help people to study the development of Management incentive mechanisms,disclosure of relevant information,and to make Board of Directors system to be better.