The Research Of Measurement Models Of Earnings Management

Earnings management which emerged in the late 20th century, the eighties is an important area in accounting studies, especially in empirical study fields. Earnings Management has been received great attention in the popular press and academic accounting literature. Recently, various accounting scandals, and subsequent regulation has fueled this attention.Earnings management has a wide range of research field, the key is how to measure earnings management. From the point of earnings management research nearly past 20 years, the measure of earnings management is not only. Foreign academics in the field of earnings management has done considerable research, the main focus of these studies is how to accurately measure the extent of earnings management. And proposed three methods of detecting earnings management: separation model accruals, specific accruals models and earnings frequency distribution model.But so far, the results of empirical research on how to measure earnings management is still controversial, they do not still have found a perfect measurement to measure earnings management. This paper references Stephen R. Stubben's revenues model to introduction a new model, the revenue model, and compared with existing models in order to find a better model in testing earnings management.This study by testing the relationship between the abnormal accruals or revenues and the earnings management motivated by rights issues of the listed companies,to estimate the applicability of the revenue model ,Jones model and modified Jones model. Through analysis and inspection, Jones Model, Modified Jones model and Revenue model can detect earnings management in some extent, but Jones model better inspection. The worst testing effectiveness is the revenue model. Therefore, the new revenue model for the introduction of testing earnings management still needs further verification.