Real Earning Management And Market Reaction Of M&A In China Listed Comparies

Along with the complete reform of non-tradable shares and the merger and acquisition related laws and regulations revision and implementation of stock acquisitions has become the important means of M&A payment in China. In share-based payments mergers and acquisitions, corporate motivated by earnings management share price manipulation, and decrease the cost of mergers and acquisitions. Existing studies focus on the motivation to accrued earnings management, and surplus management, according to a recent study of real earnings management has become the important means of manipulating profit, so real earnings management in merger and acquisition of share-based payment received people’s concern.In this paper, on the basis of the reviews the existing research, first of all for share-based payments mergers and acquisitions in the existence of real earnings management are researched, the index of real earnings management test its existence. Research shows that the listed company merger and acquisition of share-based payment when using the real earnings management, also found that real earnings management and trade-off between accrued earnings management. In confirmed that real earnings management on the basis of the share-based payments mergers and acquisitions in the influence of different characteristics of mergers and acquisitions of real earnings management degree was studied, the results show share-based payment in mergers and acquisitions, the state-owned holding company than other company implemented a more real earnings management, the lower the degree of ownership balance, buyout firms using real the higher the degree of earnings management, mergers and acquisitions company is stronger external audit real earnings management degree rise.This paper studies the market after the reaction of the earnings management in such M&A, the study found that investors only corresponding meter earnings management has ability to recognize, and can give negative feedback, but for real earnings management can’t effectively identify, even if has found that companies use the accrued earnings management.Finally, this article on the basis of empirical research and analysis, this paper research conclusion, and gives the relevant policy recommendations.