Study On Earings Management Of China’s Loss Listed Companies In The Fourth Quarter

Earnings management directly affects the quality of accounting and the relative interest of accounting information users, and it has been a hot topic of accounting research for a long time. At present, domestic and foreign scholars do a lot of empirical study about earnings management of listed company, because these studies are based on annual financial data, and pay less attention to the choice of opportunity of earnings management, and few of domestic and foreign scholars mention the situation of the quarter distribution of earnings management. For a variety of purposes, such as to achieve the established annual budget, whitewash the annual report data, listed companies are likely to manage earnings in the fourth quarter.And according to the provisions of the CSRC, listed companies only need to disclose the first and the third quarter report, semiyearly report and annual report, even in the fourth quarter of earnings management, the information is also difficult to be aware of its external stakeholders. Therefore, we choose the fourth quarter as the focus of the study.First,the paper discuss the significance of the study about quarter preference of earnings management, which is based on realistic background and system background; Then, it gives the definition of earnings management and the theoretical basis. Then, combining the system of C hina, it proves the special motive and the methods of earnings management in-depth China loss listed company.To reach this conclusion,we analyze qualitatively the reason of loss listed company’s industry distribution and analyze of the reasons of earnings management for loss listed company. The paper analyzes quantitatively of two indicators of value in the fourth quarter and other quarters of the index value, and to compare them. The paper uses distribution of the test method to check whether the difference is significant. The paper uses the method of comparative to analyze the heavy losses company at the end of the year tend to bigger losses or smooth earnings. And find the conclusion: Comparing with the first three seasons, the fourth quarter is the general one which earnings management of listed company happens; At last, according to the present situation of earnings management of loss company, we point out some essential and beneficial policy recommendations from these aspects: corporate governance structure, supervision system of loss listed company, accounting standards, and the external auditing quality.