Study On The Earnings Management In View Of Executive's Compensation

Earnings management is derived from the Western concept, its essence is to determine accounting standards leave room for larger, corporate managers use accounting standards and accounting policies imperfect choice, according to a certain degree of professional judgments on the financial report Information relating to earnings management. Earnings management is the appropriate body to take on the interests of legitimate means to pursue self-interest initiatives, and promoting the rapid development of capital markets and accounting standards of perfection. On the other hand, excessive earnings management led to serious distortion of accounting information may damage the interests of other stakeholders and undermine the market order of fair competition.Accounting income is compensation contract of senior managers to develop and implement an important factor, as incomplete contracts, information asymmetry and bounded rationality of economic agents such as, managers may control their own grasp of accounting information for earnings management. Earnings management, the ultimate motivation is to obtain the private interests of executives, the compensation contract based on accounting data to maximize motivation.Incentive compensation for senior management associate of the impact of earnings management, this paper shows the motivation of the current status of senior management, analyzes executive compensation and earnings management incentives the deep links to explore and research to improve incentive compensation management Main form and frame structure, the use of a new mode of operation, build senior management compensation incentives to improve the structural model to study the management of listed companies in the incentive system to improve the quality of earnings management to improve the effectiveness and limitations.