Empirical Research On Relationship Between Earnings Management Methods And Accounting Information Comparability

The comparability of financial report is the international accounting standards in1996American SEC evaluation criteria.In addition.the comparability of financial report is also one of Chinese accounting information quality.But because the difficulty of measurement and access of data.the research on comparability of financial report is less than that on relevance,reliability and robustness. By analyzing the implementation of the new accounting standards comparable to Chinese accounting information to understand the impact of the implementation of new accounting standards comparability of accounting information. At the same time, through the analysis ofthe data of listed companies, research and real earnings comparability of accounting information management and relationship management accrued earnings, expectations derived by analyzing the curb earnings management, accounting information to improve the comparability of methods and approaches.We select companies randomly from A-share listed companies in China during the period of2007-2012, and follow De Franco, Kothari and Verdi (2011) to measure accounting information comparability of every company, and then study the trend of financial reports comparability after the implement of the new accounting standards in2007which is converging with international accounting standards. We also study the relation between financial report comparability and accrual earnings management, real earnings management. We find that the financial report comparability has not been improved significantly after the implementation of new accounting standards in2007. On the contrary, it is obviously in a downward trend. Under the special situation in China, relationship between financial statements comparability and earnings management may be not evident, accrual earnings management and real earnings management have significant negative effect on the comparability of financial reports. The results indicate that the accounting standards still need to be perfected, market regulation on earnings management also need to be further strengthened.