The Analysis Of Earnings Management Structure Based On Tax

In this paper, We studied the relationship between tax system and the choice of company's earnings management structure.based on the theory of self-serving behavior and the goal of profit maximizing, companies have the motivation of reducing tax costs during their earnings management. in our current tax system,different profit items have different tax costs, in order to achieve earnings targets with lowest tax burden,companies which have Earnings management motivations will compare the cost betweem different pofits items.This paper analyzed the tax burden of different profit items, And on this basis, analyzed the choice of company's earnings management structure.The results show that:(1)As the impact of income tax, the company is more inclined to choose non-taxable items to manipulate, and less inclinde to chose taxable items to manipluate. This is because they have the motivation to avoid income tax costs.(2)Compared with general companies, companies with high income tax rates are more likely to choose non-taxable items, their motivation of avoiding tax costs is more intense.(3)As the impact of the vat, in the taxable items, the company is more inclined to choose item 1 to manipulate, and less inclinde to chose item 2 to manipluate. This is because they have the motivation of avoiding vat costs.These findings show that:tax costs will affect the choise of company's earnings management structure.The purpose of this study:(1)To explore whether different profit items have different tax costs, and then classify the profit itms based on tax.(2)Further study the differences in tax costs, how to affect the choice of company's earnings management structure. Which shows the relationship between tax system and the choice of company's earnings management structure. The contents of this study:This paper is divided into six parts, as follows:(1)The first chapter introduces the whole topic of this article,which include the background, meaning, purpose, research methods, research ideas and the expected contribution.(2)The second chapter, reviewed the literature research results at home and abroad, and compiled ther views of scholars(3)The third chapter, the theoretical analysis part of this research.(4) The forth chapter, the empirical part of this research(5)ChapterⅤ, empirical part of the previous papers based on the study design, collect and select 283 companies in the manufacturing sector in 2009 empirical data, and then analyzed the test results at last(6)ChapterⅥ, conclusions and recommendations, first obtained 3 conclusion based on the theoretical analysis and empirical test, then made three policy recommendations and concluded deficiencies in this study.the main contribution of this study:(1) By analyzing the relationship between earnings management behavior andthe value-added tax, indicating that,under certain conditions, the value-added tax can also affect the company's earnings management behavior, but most previous studies did not consider the impact of the value-added tax.(2) Divided the structure of company's earnings management based on tax. Analyzed the tax burden of different profit items, and then classifed the profit itms based on tax. the profit items are divided into three categories, and on this basis, studied the relationship between tax system and the choice of company's earnings management structure...