The Empirical Analysis Of Earnings Management And Management Ability Of M&A Based On Obsorption Merger

With the rapid development of Chinese Securities Markets,listed companies will take merger and acquisition activities to expand or optimize the allocation of resource. Obsorption merger,based on its features,has the advantage in taxes and resources allocation,generating high quality company and getting a lot of attraction. Meanwhile Capability of M&A was brought up by the experts then,which is critical to the effectiveness of M&A,especially Management Ability of M&A,it lays the foundation for the M&A as it is the controller of the resources of company.When the Listed Companies are making M&A,it is more likely to see Earnings Management happening,which includes real Earnings Management and accrued Earnings Management.As we know.it mainly embodys the bad influence of the truthfulness of accounting information,effecting the decisions of accounting information users and have different influence on the development of company. This thesis seperately studies the Earnings Management in Obsorption Merger and Management Ability of M&A of A Stock Listed Companies,for the Correlation of them via empirical analysis,which can offer advisory opinions for the M&A activity.With regard to the empirical analysis.First,Earnings Management of the sample companies are studied,The Modified Jones model and accruals method is adopted by using the sample datas of the year before and during Obsorption Merger, discretionary accruals is calculated as the value of Earnings Management.Then,construct the index system about Management Ability of M&A.Principal Component Analysis is used to get the weight of indexes.At the end,the aim is to make the empirical analysis for getting correlation of Management Ability of M&A and Earnings Management.Test the hypothesis:Unhealth earnings management exists during current period and next year of merger;The correlation between earnings management and Management Ability of M&A is conspicious during the next year of merger instead of current period.After the empirical analysis, try to offer some suggestions.of course, there are deficiencies explained where the research need to be optimized.