Reversal Based On The Price-earnings Ratio, Earnings Management Problem Research

Along with our country joining the WTO, the development of shareholding reform and securities business, competition which our country companies face is more and more vigorous, earnings management phenomena are getting much more attention from many kides of people in our society.Since the 80's of the 20th century, the western financial academics have payed special attention to the research of earnings management. At present, the international scholars has researched this issue from theory to dmnonstration, and got the better result. The domestic scholars also had much more research result, which mainly focused whether the earnings management occurred, when and where occurred, and also from the point of theory view to research the earnings management and company management. These researches mostly focused the exterior environment's influence, but ignored the securities business's effect to the earnings management.With the reference of domestic and international scholars' studies, this essay aims to does a new systematic theoretical analysis from the reverse change in P/E ratio, which puts forward the assumption of relation between earnings management and the P/E ratio.This essay's research from the angle of P/E ratio reverse change, choose the swatch 49 and 30 of P/E ratio having ascending and descending from A share respectively, and for each swatch choose the compare swatch. By the model of DeAngelo Model without assets affect, DeAngelo Model within developing factor and Industry model without assets affect, this essay analyzes the difference of TA and ATA. Then established the Modified Jones Model with the below the line item, the Acost and Δinventory. Finanly, this essay testify the assumption, which is the listed company of P/E ratio reverse have the behavior of earnings management in the certain year.This essay intend to research the relation between listed company's P/E ratio change and earnings management, hope to bring forware some useful countermeasure to improver the company management and regularize the accounting behavior of listed company.