Corporate Governance Structure Of Earnings Management Research

In recent years, some listed company seriously distorted in accounting information, the phenomenon of earnings management take place occasionally, the examples of minority stock holder's interests take place occasionally in administrator and big shareholder infringe, this has influenced investors' confidence and development of security market. As to the concept of earnings management, each scholar's definition of it is not the same. While this text summarizes its definitions, put forward the view of the concept of earnings management. There are many reasons to incur earnings management, one of the most important reasons is defection of corporation governance. This text carries on research on the relationship of the structure of corporation governance and earnings management.This paper explicates respectively the conceptions of corporate governance structure and earnings management as well as some relative theories. Based on the framework of the governance structure, it discusses the implications of the deficiencies of the corporate governance structure on the earnings management of listed companies according to the real situation of the Chinese listed companies. Several listed companies in 2004-2005 annual reports are selected as samples. Making use of the corrected Jones Model, empirical study is carried on concerning the relationship between corporation governance structure and earnings management with methods such as descriptive statistics and regression analysis, etc. Some solutions are put forward to improve corporation governance structure with the hope to regulate the behaviors of earnings management in listed companies.The purpose of the analysis of the structure of corporation governance is to more properly understand the relationship of the structure of corporation governance and earnings management, to improve the structure of corporation governance in term of halting earnings management.