The Empirical Study On The Influence Of Corporate Governance On Earnings Management Of Private Listed Companies

Nearly years,the private sector grew rapidly in China,it contributes to more than half China's GDP and becomes an important part of socialist market economy.However,as its rapid growth,lots of problems about carporate governance protrude,this would hinder the healthy growth of the private sector.Thus,it is of great signifinance and necessity to have in-depth study on this topic.This paper empirically analyzes the relationship between character value of corporate governance and earnings management to find the defects of coporate governance in private listed companies . It privides a new method about corporate governance.The fist part of this paper is about thories,it reviews the correlative literatures and papers concerned on corporate governance and earnings management, summarizes the character of private listed companies' governance structure,the recent study actuality on private listed companies' governance structure.The second part is empirical research part,it analyses on how the character of private listed companies' corporate governance structure impact on earnings management on private listed companies on Shanghai and Shenzhen Stock Exchange during the period of year 2006-2008,which were listed before year 2006,by Modified Jones Model .First, summarizes the character of private listed companies' corporate governance structure on the aspect of ownership structure,characteristics of board, characteristics of board of supervisors and characteristics of manager.Then, propose hypotheses according to the theoretically analysis and logistic consequence,and then use the regression method to test and validate all the hypotheses, so that we can know how the character of private listed companies' governance structure impact on earnings management.The third part summarizes all the study results and relevant applications, bringing up some suggestions on how to improve the private listed companies' corporate governance structure.At last, the paper also shows its shortage in the research,propounding on the aspect which should be researched more in the future.