Two-dimension Earnings Management Study On The Dividend Phenomenon Of Listed Companies In China

In the capital market, the company usually consciously engaged in earnings management behavior, for the motives of finance, contracts, and deal with political supervision. The contrast between the huge profits of listed companies with meager dividends is likely strong evidence of earnings management.On the basis of historical data, the paper discusses from the transverse dimension and the longitudinal dimension, in-depth analysis of the characteristics of earnings management and dividend distribution influencing factors, using of the conclusion of model test explains the dividend phenomenon of China’s stock market. The paper that:(1) in the other variable conditions remain unchanged, the results of real trading earnings management and dividend negative correlation; real-transaction earnings management results and DPS is greater than0.5yuan positive correlation.(2) in the other variable conditions remain unchanged, the results of the accounting earnings management and dividend negative correlation; accounting earnings management results and DPS is greater than0.5yuan positive correlation.(3) In order to meet the regulatory requirements of the IPO, it is more likely to return on investment earnings management; in order to meet the additional placement of regulatory requirements, but do not tend to use the accruals and related party transactions earnings management; for profitability motives, tend to use the investment income, related party transactions and accruals earnings management. Accruals and investment income surplus management space, while the smaller space of related party transactions and impairment of earnings management, poor operability.(4) The cost of equity capital for the earnings management is an average of6percent, the cost of earnings management is lower for China’s stock market listed companies.