"Size Of The Non-" Study On Earnings Management Holdings In Real Activity

Shares which accounted for two-thirds of the total amount of capital markets to obtaining the right to trade, the original non-tradable share reform has a greater impact on the capital market, become the focus of attention of securities regulators and the vast majority of investors.As a result of the reform the original non-tradable shareholders and stock prices are directly related, so the original non-tradable shareholders in the process of reduction in order to maximize the pursuit of individual interests may use control and information superiority for earnings manipulation.Although the reduction of original non-tradable shares have been the subject of theory circle and practice circle pay close attention to,most of the research focused on the reduction of motivation, the factors affecting and the market effect.The research about the reduction of original non-tradable shares is deficient. The implementation of the new accounting standards compression enterprise management accruals earnings management space, and then turned to select the hidden high real activity earnings management.This paper examines whether the shareholders in the reduction process to take the real activity earnings management.This paper based on reduction of original non-tradable shares and real earnings management literature review and theoretical analysis.Then,the paper use the company which occured reduction in year of2007-2011in the A capital market as research object,analysis real activities earnings management manner with the four hypothesis follow the "theory to the hypothesis to test " of empirical mode.Research results reveal:(1) Corporation exists positive real activities earnings management behavior for the purpose of original non-tradable shares reduction.This explains that share structure reform did not completely eliminate the major shareholder encroachment the interests of minority shareholders.(2) Market value of reduction of original non-tradable share has positive correlation with the real activities earnings management.In a large-scale reduction,shareholders more incline to excess production control.This indicates that the reduction scale impact the degree of real activities earnings management and it’s methods.(3)The reduce company’s liquidity demand and the real activities earnings management level have a negative relation.And the reduce company’s earnings ratio have no significant relationship with the real activities earnings management.This indicates that the level of real activity earnings management differences due to reduction of motivations.(4)Equity balance can inhibit the activities real earnings management behavior,but separation of the post of chairman and general manager can not inhibit the activities real earnings management behavior.Real activities earnings management inhibition reflected in the cost control and production control is more obvious.The result of this paper intended to improve the effectiveness of accounting earning,investor decision making correctness and timeliness of information disclosure,promote the capital market to healthy and orderly development.