China Listed Companies' Earnings Management And The Management Characteristics Of The Correlation Study

With the gradual development of China's capital market and the increasing number of listed companies, the implications of earnings management of listed companies on securities market is becoming bigger and bigger, it has become a major hidden danger to the development of China's economic, particularly the development of the securities market. Therefore, Chinese scholars did many studies on earnings management in view of our country's special background on the basic of research achievement of foreign scholars, acquired a lot of meaningful theoretical results at the motivation, means etc. The author considered that almost all of the information distortion of financial report on China's securities market is related to their managers, so, the study of the relativities between earnings management of listed companies and managers'characteristics is very meaningful.This paper did a research on earnings management of our country's listed companies from new perspective-managers by using standardized research and empirical studies. It is divided into six parties: the first part described the background and the significance of this paper, the domestic and foreign literature review as well as the research method and main content; the second part defined the concept of earnings management and manager's characteristics first, then, described the theoretical basis of earnings management, why and how the managers conduct earnings management, and the impact of earnings management; the third part analyzed the relativities between the earnings management of listed companies and managers'characteristics by using standardized research, conclusions is as follows, in our country's listed companies, earnings management and stocks owned by managers is positive correlation, earnings management and managers'rewards is positive correlation, earnings management and the equity managers gained from equity incentive is negative correlation, earnings management and chairman holds a concurrent post with general manager is positive correlation, earnings management and managers'change is positive correlation, earnings management and managers'age is negative correlation, earnings management and the proportion of man managers is positive correlation; the fourth part chose all the A shares from the Shanghai Stock Exchange in 2008 as the research object, tested and verified the relativities between the earnings management of our country's listed companies and managers'characteristics by multiple linear regression and parametric test; the fifth part proposed some suggestions for reducing earnings management based on the standardized research and the empirical studies; the sixth part concluded the results of this paper first, then, analyzed the limitations of this paper and pointed the further research.