Research On Earnings Management Of Real Estate Listing Corporation

Earnings management is one of the most widely studied topics in the field of accounting academy and economics in modern times,and it has the certain complexity.It means that within the scope permitted by accounting standards,the enterprise management can choose and change the accounting policies reasonably to achieve their own interests.With the continuous development of China's securities market,investors are no longer blindly following the trend of investment and they pay more attention to the accounting earnings information.Therefore the listing Corporation has the motive of earnings management.Appropriate earnings management is beneficial to the company's value,but in currently there are so much phenomena of abusing earnings management in listing Corporations,which has led the bad influence to market economy and hindered the development of the listing Corporations.The real estate industry has been developing rapidly since the last century 80's and gradually become the pillar industries of China's national economy,but it has the high risk.The macro control of the government has restrained the overheated development of the real estate.Despite there are so many related financial policies introduced by government,the real estate industry is still in the stable keep rising trend.In order to pursue more retained earnings and avoid high taxes,real estate listing Corporation generally use pre-sale system and the unique accounting methods to manage earnings.This paper mainly use the empirical research method to study earning management of real estate listed companies.And the original data were handled by Excel,SPSS21.0 and Stata,software.Finally the the model describe positive and negative correlation between earnings management and the variables were obtained to explain the means of earnings management of the real estate listed companies.Research results revealed the nature of the behavior of earnings management of Listed Companies in real estate.The results of the study showed that amount of inventory changes and accounts receivable was positively correlated with earning management,but the changes of accounts payable in advance,the changes of costs in business,administration expenses and the changes of financial expenses was negatively correlated with earning management.It fully revealed that the earnings management behavior of the real estate listing Corporation was carried out by adjusting the amount of the accounting subjects.According to the conclusions this paper proposed relevant policy recommendations and measures to guide rational investment of investors and the measures are beneficial to China's securities market and the effective operation of capital market.