Financial Analyst Earnings Forecast With The Company Earnings Management

Financial analysts industry has been very mature in western capitalist countries, by contrast, analysts industry of our country starts relatively late. However, with the development of capital markets, the role of financial analysts are increasingly important, financial analysts are bridges between listed companies and investors, their surplus level prediction about the future for investors on the company’s surplus is expected to play a critical role in the future. On the other hand, with the rapid growth of China’s economy, the earnings management of listed companies is becoming more and more widely used, in addition, with the accounting standards as well as the continuous improvement of the internal control system, in the actual use of real earnings management to adjust profits also gradually become the focus of company management. Therefore, based on real earnings management vision, a financial analyst earnings forecast will affect the earnings management of listed companies’ activity has important theoretical significance and practical significance.The research’s purpose of this article is trying to explore financial analyst earnings forecast’s impact of earnings management on the company, this article first has carried on the literature review to both and mechanism analysis, then selected the2010-2012a-share listed companies as samples, with financial analysts forecast accuracy, surplus financial analysts forecast the degree of differences, surplus the number of financial analysts following as independent variable, with earnings management as the dependent variable, select real earnings management model to measure the degree of earnings management, put forward hypothesis, empirical studies the financial analyst earnings forecast’s impact on the earnings management of listed companies. The study found that: Financial analyst earnings forecast accuracy no significant impact on earnings management and financial analyst earnings forecast differences degree is negatively related to the earnings management level, financial analysts follow number is also negatively related to the earnings management level. This paper calculated with real earnings management model of earnings management, according to the direction of adjustment of surplus earnings management all samples can be divided into positive samples and negative samples. Research results show that the analysts forecast the degree of differences, surplus analysts follow only negative correlation with explanatory variables in the whole sample and sample of significant positive earnings management. This paper also selected the robustness test of accrual earnings management model, confirmed the robustness of the findings. Finally, the main conclusion of this article is summarized, put forward the policy suggestion and the problem in this paper we can research further.