Earnings Management Of Listed Companies In China Fair Accounting Earnings Quality Of The Information

In recent years, earnings management (EM) has drawn increasing attention of domestic and foreign parties. People's intuitive judgment and existing research results have confirmed that China's listed companies also have the common phenomenon of EM. The disadvantageous side of EM has become almost the information distortion or concoct pronoun. However, China's stock market has developed vigorously and has gradually inclined from original "news market" to rational market. It has the quick reaction rate to the public information. The accounting earnings of listed companies have strong information content, and then affect their stock price. On the other hand, investors also more and more rely kinds of valuable information to carry on their investment decision. All these make us see the advantageous side of EM.Therefore, this paper begins with the objective conditions and endogenous motivation to discuss the reason why unfairness EM produced. It has new understanding about EM level to evaluate an existing wrong idea that EM do not divided into fairness EM and unfairness EM, and then interprets fairness EM connotation from the original intention of setting accounting standards and intrinsic motivation. Based on audit of enough independence and professional competence conditions,it further explores to use the audit opinion as distinguish standard of EM into fairness EM and unfairness EM. Finally, it uses earnings response coefficient to examine differences in accountancy surplus information quality between fairness EM and unfairness EM from both the basic problem of financial accounting theory and decision usefulness of information science.In the empirical study, this paper selects manufacturing industry in Shanghai and Shenzhen in 2009 as research subjects, and then obtains 102 samples including 82 fairness samples and 30 unfairness samples after selecting, and further empirically tests research hypotheses by Using the linear regression model and non-parametric test. The main conclusions are summarized as follows: (1) the accounting surplus of China's listed companies has certain information content; (2) if a company adopted fairness EM, its accountancy surplus information quality would be higher, if a company adopted unfairness EM, its accountancy surplus information quality would be lower, and the former would be higher than the latter; (3) if a company adopted unfairness EM, EM degree and accountancy surplus information quality would be negatively correlated.