Analysis On The Accounting Policy Changes And Earnings Management Of Listed Company

With the rapid development of domestic economy overall situation since 2013, policies have promote the capital financing market prosperity. In order to stand out from the increasingly fierce competition of enterprise, get the favor of investors with good performance, avoid political cost, or maintain the top self-interest motive reasons, the listed companies like to use earnings management to adjust the profit, which become most listed companies to protect their own interests and priorities. Since the South Sea Bubble event occur in the 17 th century, that first use of earnings management for profit manipulation, the negative impact of surplus management have event has never stopped. Excessive earnings management has become the key factor on the block and the benign development of the financial markets.In recent years, more and more companies tend to use accounting policy change for earnings management, because the measures, which has been commonly used for earnings management,such as related party transactions, debt restructuring,has been limited by the laws and regulations, many listed companies for the financing motivation, political cost motive, executives self-interest motivation and tax incentives, turn their attention to the accounting policy, which used to earnings management. Due to the accounting standard and accounting system has certain flexibility, the same transactions and events may exist a variety of alternative accounting methods. Comparing with other management methods, the use of accounting policy change has the characteristics of wide use range, low adjustment involve large sums of money and subsequent influence, etc. Considering the leaky selectivity of accounting policy, the listed companies choose accounting methods which beneficial to its own interests. Sometimes it is very unreasonable, but it would not break the law. As the result of economic development, the consequences of earnings management also have its two sides. On the one hand, excessive use of earnings management will make the surplus information of accounting report out of the enterprise’s actual performance. On the other hand, modest earnings management will promote the improvement of the accounting standard for business enterprises and the development of capital market. So, how to regulate the behavior of listed companies becomes the priority of the capital market.This paper use research methods of normative analysis, and integrating with the relevant case analysis. Normative analysis method, which the general thinking order according to the research question, causes and action are put forward. The example analysis methods: mainly for the case of GF company. By using these two methods, I finish this thesis. There are six sections in this article, according to the general logic thinking to write.The first part analysis using the accounting policy changes to earnings management of listed company, then analysis background of the study of literature at home and abroad which were summarized, finally introduce the research methods and ideas for describing a detailed structure.The second part is theory generalization on use of accounting policy changes of listed companies’ earnings management. Firstly discusses the concept of accounting policies and accounting policy changes. Secondly the surplus management concepts and methods, and the use of accounting policy change characteristics and illustrates the common means of earnings management. Finally to the enterprise contract theory, stakeholder theory, and elaborates the selective false financial disclosure hypothesis.The third part introduces the present situation of accounting policy changes of listed companies earnings management, included performance, motivation and consequences. This part of analysis plays a guiding role to next part.The fourth part, analyze the changes in earnings management of listed company of accounting policy. Analyze reason mainly from three aspects about e accounting loopholes, imperfect corporate governance defects and external supervision.The fifth part is case analysis about GF Ltd, including the situation, the consequences of earnings management, which to supervise listed companies use accounting policy change to provide enlightenment.The Sixth part, this part put forward the specification using the accounting policy changes of listed companies earnings management advice, including perfecting the accounting rules and laws, optimizing the governance structure of listed companies and establishing social credit supervision system.