The Empirical Research About Impact Of Earnings Management On Corproation Performance

With the development of economy, capital market’s financing ability is constantly improving in our country, which provided a great convenience to investor and financing party.Listed companies play an important role in the markets. The quality of financial information provided by them is related to the interests of stakeholders. In recent years, capital markets appear sorts of financial scandal, which has been seriously damage the interests of investors,so the securities commission regulates financial information of listed companies to ensure its surplus information authenticity, reliability, which is particularly important. Study of earnings management in the theoretical circle has made great progress, the research conclusion about the economic consequences under different motivations for earnings management still exist great differences. In this respect, the paper carried out some exploration and demonstration of earnings management on firm performance.Based on the domestic and foreign literature review about the research on earnings management and corporate performance, to understand the current status of the research field,this paper firstly defines the concept of enterprise performance and earnings management, and puts forward research hypotheses on the base of theory analysis about motivation of capital market, political motivation, tax incentive. Secondly, using the earnings management model to measure the degree, this article builds four models to test existence of earnings management,as well as models to test effect on corporation performance. In order to better certify the results, this article considers earnings management of future performance period during the process of building model. Finally, on the base of variable definitions, index selection, sample data collection, the article carries on empirical analysis to verify the hypothesis correctly, and put forward reasonable suggestions on the regression analysis.In this paper, we obtained the following conclusions by empirical research: accrual earnings management has a positive impact on short-term corporate performance under the investment incentives, but has negative influence on long term performance. On the condition of finance motive, earnings management has positive impact on enterprise performance.Under compensation motive, research has the same results as the finance motive. Debt contract motivation’s results are not noticeable. Under the political motive, accrual earnings management has a positive impact on short-term corporate performance under the investment incentives, but has negative influence on long term. Real activities manipulation has negativeimpact on short-term performance. Accrual-based and real activities earnings management exerted positive influence on long term performance under tax cost motive.