Study Of Earnings Management Of Listed Companies In China

The subject of earnings management has been studied for morn than twenty years in Western accounting theoretical circle. With the development of stock market and the surging of listed companies in our country, 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. Hence earnings management has become one of the most important causes for accounting information distortion. In order to solve the problem of accounting information distortion and promote the development of the stock market, it is necessary to probe into the issue of earnings management in listed companies. Considering this point, the thesis tries to study the subject from several major perspectives.This paper is based on some basic knowledge of earnings management, analyses the reasons that earnings management exists and presents the role of earnings management both in the market and economic today. Then it states the motives that lead to earnings management, the strategies and means of earnings management. On the level of above actions, the paper provides the measures to strict earnings management of listed companies. The thesis is made up of the following three parts:The first part gives the significance of this thesis and reviews the achievements of the accounting scholars in the past, then introduces the concept of earnings management and the reason it exists, and finally analyses the advantages and disadvantages of earnings management. The second part first introduces the motives of earnings management, analyses the motives in China with the circumstances of China, then simply states the strategies and lists different ways to manage earnings.The third part puts forward some measures and suggestions, based on the results of the above study, for earnings management of listed companies in China: the detailed analyses aimed at perfecting corporate governance structure, accounting regulations, the supervision of CPAs, the supervisory laws and regulations of China's securities market.So conclusion of this article is: Earnings management is different from accounting concocting. Earnings management is a legal behavior, and it shows a powerful life-force. Earnings management has been a basic skill which managers in every area of the world need. But it has dual character: Excessive earnings management is harmful to enterprises, to society, and to country. So how to guard against excessive earnings management has become the focus of the current national regulation.The main innovations and shortcomings:1. Redefine Earnings management concept and correct theoretical circles understanding of the management of surplus deviation: Earnings Management is a neutral concept, it not only increase the information content but also can reduce the information content, but we are more interested in unreliability of the information it contains.2. China's listed companies are mainly restructured from state-owned enterprises from such a large environment, the earnings of listed companies in China revealed Management existing problems.3. With the implementation of China's 2007 new accounting standards for listed companies in China analyze the impact of earnings management. At present, China is at a stage of rapid economic development, relevant policies and regulations have been updated. Subject to resource constraints and the level of the author, although collecting the latest information on relevant issues, but earnings management of listed companies on the latest developments with related issues in the text is still not enough, i still did not achieve adequate depth and breadth.