Research On Relationship Between Limited Sales Shares Of Private Placement Lifted And Earnings Management

Since the1990s, our country’s securities market obtained a rapid development. After share-trading reform, private placement by listed companies in China become the main way of equity financing. But, due to start later, various laws and regulations in our country is not perfect and sound, information asymmetry phenomenon exists generally, accounting standards’flexibility and the deficiencies of accounting information disclosure supervision provide the space to earnings management. The study of earnings management has been receiving more and more attention of scholars both at home and abroad, and directed by limited sales lifted shares provides a unique perspective for earnings management research. The empirical research of Chinese securities market shows that, the listed company by earnings management controlling shareholder interests of conveying phenomenon exists generally. Chinese listed equity structure is not reasonable lead to shareholders "a stream of single big", in the company dominate a decision. And the constraints of the big shareholders have not yet market mechanism, it is more likely to produce big shareholders to their own interests infringed the interests of small and medium shareholders phenomenon. Big shareholders often by earnings management to conceal its interests transmission motives. Earnings management allows investors to disclose information according to the listed company to the management of the enterprise performance make objective judgment, reduce the financial report of reliability, reduces the capital allocation efficiency of the securities market. To solve these problems, it is necessary to the listed company of limited sales by directional ban of earnings management, reveals the listed company limited sales lifted by directional of earnings management way and motivation, the controlling shareholder equity concentration, reduced their share of earnings management degree of influence and the resulting economic consequences.Because of limited sales by directional in nearly three years to start are lifted, the current domestic research of the phenomenon that literature is not much, but there has been based on the perspective of earnings management literature to this phenomenon is discussed, directional shares of limited sales lifted shares and earnings management research of the relationship has the very vital significance. This paper attempts to take2006-2007years already implementation of shares by listed company directional sample data based on directed by limited sales lifted shares of earnings management and their economic consequences for research. The empirical results show that the listed company limited sales lifted shares by directional after reduced their actual existence earnings management, and the correlation of the directional shares subscribed for shareholders in the actual shares lifted holdings of earnings management level significantly higher than the non-affiliated shareholders of the directional shares lifted shares subscribed for the actual holdings of earnings management level. The study also found, the connection of the shareholders holdings proportion and the degree of earnings management is related. Directional shares of the listed company, limited sales before lifted shares the empirical study of earnings management, can explore the controlling shareholders empty or support motivation, at the same time for the supervision department of the listed company, strengthen the supervision of the behavior of earnings management, and promote the stable growth of listed companies provide theoretical basis and policy implications.The contents of this paper are arranged as following:the first is the introduction, this paper introduces the background and significance of the paper and this paper to reveal problems. The second part is the home and abroad literature review, about directional shares and earnings management related literature reviews, and carries on the review. The third part is directed by limited sales and earnings management lifted shares of theoretical analysis, also is the theoretical part. This article first expounds the directional by compulsory limited sales shares, the cause of directional subscribe by regular lock the relevant provisions of the directional shares and limited sales shares lifted the relevant provisions of the circulation, and then analyzes the big shareholders and related reduced their shareholders directional additionally-issued shares of a reason and other non-affiliated shareholders reduce held directional additionally-issued shares of a reason, then expounds the definition of earnings management and its basic characteristics, summarizes the listed company by earnings management means, and finally theoretically the directional by limited sales lifted shares before shareholders different nature by earnings management motivation, and puts forward relevant hypothesis. The fourth part is directional shares by listed companies in China limited sales and earnings management lifted shares empirical analysis of the relationship, this paper also is empirical analysis of the parts. According to the research hypotheses proposed above, this article first verify the associated with shareholders in the non-affiliated shareholders of the shares subscribed for by directional unlock the actual before holdings, the listed company by earnings management of existence and its way, and then use the multiple regression model on associated shareholders of the directional subscribe shares in the actual unlock additional holdings of earnings management level and before the non-affiliated shareholders of the shares subscribed for by directional unlock the actual holdings of earnings management level before compared and analyzed the associated with shareholders in the non-affiliated shareholders of the shares subscribed for by directional unlock directional shares after limited sales strands of reduced their proportion and the relationship between the degree of earnings management. The fifth part is research conclusions and policy recommendations.