Controlling Shareholder Equity Changes And Earnings Management

Tradable share issue is an important factor restricting China's long-term development of the capital market, especially with the capital market continues to mature, the contradiction between the non-tradable shares and tradable shares become increasingly prominent. In order to promote the improvement of the securities market and the normal system of corporate governance structure, to achieve securities market's supply and demand and pricing mechanisms to address the listed companies with shares of different weights and other root causes of conflict-induced phenomena, in April 2005, the Commission started tradable share reform, which makes it possible to achieve full circulation China's securities market. But with the gradual lifting of the ban traded shares, the controlling shareholder of the increasing holdings become the norm, particularly in the reduction of the main shareholders, whereby the stock market will usher in the era of the big expansion, and this behavior because the controlling shareholder of the reduction brought The impact must be quite different from the regular expansion. Split share structure reform, the listed companies in China "dominance" feature has not changed, the controlling shareholder of the start sought new ways hollowed out, and plunder against the interests of small shareholders. In this context, this paper processes controlling shareholder equity changes in earnings management to study new ways to find Shareholders' encroachment.In this paper, our Test 2011- 2014 China Shanghai and Shenzhen A-share total of 4565 non-financial listed companies for the study, from the perspective of the interests of a large shareholder expropriation, by establishing multiple regression model to study the proportion of the controlling shareholders Relationship between the controlling shareholders holdings, holdings of the controlling shareholders, the equity absolute balance and other factors and earnings management. The study found that: the greater the proportion of controlling shareholders, the greater the number of holdings, the larger the number of holdings, the higher the degree of earnings management of the company. This shows that the controlling shareholders of listing Corporation by means of earnings management and real earnings management two means to adjust the company's surplus, to cooperate with their share of the increase or decrease. In this process, the majority of non controlling shareholders and the controlling shareholder of the holding, but with their collusion, the common occupation of the interests of minority shareholders. Also for the problems in the process of controlling shareholder of shares change direction of earnings management that holdings of the controlling shareholder of the shares will be down the earnings management, the controlling shareholder of the reduction shares will be the conclusion of upward earnings management.