Game Analysis On Earnings Management Of Listed Companies Based On The New Accounting Standards

With the vigorous development of China’s stock market, earnings managementhas become a very common problem. But obviously if the extent of earningsmanagement is too large, for the economy as a whole, can easily lead to theperformance of the industry crisis. Listed companies earnings’ informations can notonly impact on the company’s stock price, still affect a lot of contracts and importantparameters, so listed companies earnings reports are the main source of investordecision making. But because in our country most investors’ qualities are finite, andcannot identify earnings management of listed companies, thus causing failure ofinvestment, earnings management has become the important research topic in Chinesesecurities market.Accounting and earnings management has the inseparable relations, on one handas a result of accounting standards in the formulation does not limit the enterprisechoice of accounting policies, for enterprises in the selection of accounting policiesprovide a certain degree of autonomy, contributed to the company’s earningsmanagement; on the other hand, the Ministry of Finance in order to prevent theenterprise earnings management, constantly revised the enterprise accountingstandards.Taking Chinese listed companies as the research object, the study rangepositioning based on the new accounting standards on the earnings management of thelisted company, earnings management and accounting standards through theinteraction between reveals new accounting standards impact on earningsmanagement of listed companies and accounting, further rules specified mechanismbetween earnings management and analyzed the game, combined with the case to testthe game results, and then on the accounting supervision department to makeaccounting guidelines provide recommendations.The first chapter: an introduction. It introduces the research background, researchscope and significance, research methods, content arrangement and structure andinnovation of this paper.The second chapter: theoretical basis and literature review. This chapter startsfrom the domestic and foreign scholars’ concept of earnings management, introducesthe research and development on earnings management both at home and abroad,summarizes earnings management and the characteristics, further analyses the ROA of listed company data from2003to2010, and finally puts forward why earningsmanagement under the new accounting before and after the promulgation of theproblem will produce abnormal fluctuation.The third chapter: Accounting and earnings management mechanism analysis.This chapter goes through the interaction between the new accounting standards andearnings management. Put emphasis on impairment of assets, related party disclosureguidelines, criteria for debt restructuring of the old and the new change, newaccounting standards on the earnings management of the listed companies spacereduction and enlargement, and confirms the listed companies in the new accountingstandards promulgated and abnormal fluctuation.The fourth chapter: the earnings management of listed companies’ analysis. Bylisted companies and the Ministry of Finance on the game analysis between theearnings management, this chapter elaborates the problems of listed companiesearnings management factors.The fifth chapter: through the case analysis to verify the results of game.The sixth chapter: conclusion and prospect. This chapter of the new accountingstandards makes the following suggestions: improve the accounting standards,enhance the efficiency of execution and supervision, and learn from foreignstandard-setting experience, confidence with gradually improving China’s accountingstandards convergence with international standards.