Study On Earnings Management Of The Listed Company Based On The External Governance Environment

Our country have established market economy system since the reform and opening up. During the economic transition period, along with economic sharply development, problems such as structural imbalance and the regional disparities of development increasingly appeared these years. The imperfect external governance circumstance provide opportunity for authority to make earnings management, Which will due to distortion of the accounting information in the mendacious financial report, and have harmed the interests of investors and creditors, but also affected the efficient allocation of resources in capital market. Earnings management has always being a hot topic for scientists in the field of company management, whereas how outer governance conditions affect earnings management have been many scholars' concern.On the basis of researching theories, the writer have already summarized related research results at first, and then collected 2654 financial figures from 2009 to 2014 and engaged empirical analysis with STATE by region to study how earnings management are effected by government intervention, legalization level, financial liberalization, intermediary organization development and industrial competition.The research results in this paper show that: the writer found a inverse relationship between government intervention, financial liberalization, intermediary organization development and earnings management, which means the lower degree of government intervention, the higher degree of financial liberalization and the higher degree of intermediary organization development is, the lower degree of earnings management is. There is no clear relationship between legalization level and earnings management. However, there is a positive relationship between price fluctuations, industrial competition and earnings management. Which means unstable economy and fierce competition will conduct earnings management. As a whole, a better external governance circumstance could somewhat depress the degree of earnings management.