The Research Of Listed Company Earnings Management

Since the 1990’s,with the rapid development of capital markets,There are more and more listed companies in Shanghai and Shenzhen,The Earnings Management Research as a hot research topic has years of research history in Domestic and Abroad,it has formed a complete theoretical system and a lot of research,.The reason of the Earnings Management is much important in the theory of Accounting is that the Capital markets play a fundamental role in the allocation of resources which have been based on accounting information disclosure of listed companies,and the earnings is the core status of financial information.The earnings Disclosure of listed companies financial reports become the focus of attention in investors, creditors, regulators, government and the other stakeholders,it is also the link between investors and listed companies.The Earnings Management is that the business managers in order to achieve their own interests and company value maximization,they use a variety of methods to correct financial reports in the range permitted by accounting standards,such as taking appropriate adjustment reasonableness of accounting estimates changes、choose to use accounting methods and so on in order to achieve the desired level of Earnings.With the continuous development and gradually standardize of our country’s capital market,Relevant laws and regulations continued strengthen,The Earnings Management can help company not only avoid“special treatment”,At the same time, the “Managed” financial statements can help the listed companies win a better performance in Capital markets.Under the premise of without violating accounting rules,The Earnings Management is the need of company achieve strategic objectives,it is also reflecting the management level of company managers.But the excessive Earnings Management will result in distortion of accounting information,damage the interests of users of accounting information, even affect the healthy development of the economy.Some listed companies choose different accounting policies to whitewash company profit statement,escape tax,stabilized stock price,achieve business objectives.In summary, accounting standards is an important factor affecting earnings management behavior.First of all,This paper briefly introduces the background,theory,method,main means and identification method of earnings management in the listed companies in our country.this paper has identified earnings management by starting from the analysis of A company’s financial statements.then analyzed the motivation of earnings management.also researched the main means which have been taken in earnings management.at last,Through the reflection to the existing problems of A company, this paper propose a solution for listed companies,accounting firm.external regulators and investors.In this article I hope to inspire users of the financial statements related.