Study On The Influence Of Managerial Risk Preference On Earnings Management Of Listed Companies

With the deepening of economic globalization, the world capital market has made great development. At the same time, however, the accounting fraud also emerge in endlessly, not only bring huge losses and painful lessons to investors, affect the efficient allocation of resources seriously, but also make accounting scholars transfer their research attention to earnings management. The influence factors of earnings management is numerous, from the accounting basis to the capital market, contract and political cost, from managers personal characteristics to corporate governance and the external environment, law, religion, language, culture and so on all have certain effect on earnings management.The otherness of managerial behavior characteristics significantly impact on earnings management of listed companies in our country. Based on the differences of individual behavior characteristic, this paper takes China’s Shanghai and Shenzhen two cities from 2012 to 2014, three consecutive years of financial statement data of A-share listed companies, evaluating the level of managerial risk preference indicator system from two aspects of individuals and companies. This paper also measures the sample companies’ accrual-based earnings management degree and real earnings management degree according to the revised section Jones model and Roychowdury’s methods, and further discusses the impact of managerial risk preference on the accrued earnings management and the real earnings management of listed companies.The results show that:(1) Due to individual differences, different listed company’s managerial risk preference level has large variation, their earnings management behavior and level is also not same. With the continuous development of capital market and the constant optimizing of the external governance environment, the way of listed companies’earnings management has changed, not only consider accrual-based earnings management, but also manipulate profits through the real earnings management. (2) Managerial risk preference and earnings management presents positive correlation relationship, and the earnings management includes accrual-based earnings management and real earnings management. Namely the higher level of managerial risk preference is, the greater degree of earnings management in the company will be. And the impact of managerial risk preference on accrual-based earnings management is more significant. (3) Managerial risk preference has no significant impact on the listed companies’ earnings management strategy choice. However, firm size, profitability and scale of the board of supervisors will significantly affect listed companies’ earnings management strategy choice.