An Empirical Study On The Effect Of Gem List Companies Senior Managers Increasing And Reducing Holding On Earnings Management

GEM listed companies on October 30,2009 officially launched in Shenzhen Stock Exchange,compared with the A-share market,the GEM company presents a high price and high price-earnings ratio and the characteristics of high risk.At the same time the GEM in the asset requirements,executive competency requirements,to raise funds for use and information disclosure and other aspects of lower conditions,but its operational requirements and audit procedures more stringent.At the same time,a large number of GEM listed companies executives holding activities of the phenomenon,causing a lot of people's attention.Based on the theories of principal-agent,insider trading,information asymmetry and residual control theory,this paper studies the effect of executive increase and decrease on the earnings management of GEM listed companies.In this paper,by December 31,2014 GEM listed companies before the sample to 2012 to 2015 occurred in 1054 increase or decrease in holdings of the event as a research window,from the holdings of scale,increase or decrease in market value Earnings management,and earnings management motives.The empirical results show that:(1)the increase and decrease of senior executives of listed companies in the GEM industry,the existence of the pre-existence,the earnings management,earnings management,earnings management,Earnings management phenomenon,when holdings down to earnings management,reduction of earnings management up.(2)The relationship between the size of executive holdings of listed companies and earnings management is not significant,the larger the scale of holdings,the greater the degree of upward earnings management.(3)There is a negative correlation between the increase and decrease of the market value of GEM executives and earnings management.The larger the market value of holdings,the greater the degree of downside earnings management.As the market capitalization is negative,The larger the market value,the greater the degree of earnings management.(4)The price-earning ratio is negatively correlated with the comprehensive real earnings management.When holdings,the bigger the price-earnings ratio is,the bigger is the earnings management motive for the companies listed on the GEM.The smaller the price-earnings ratio is,the bigger the motive for the earnings management.This paper provides a theoretical basis for the relationship between the increase and decrease of executives and the earnings management of listed companies.The policy implications of the study include the need for regulators to reduce the space for institutional manipulation of earnings surpluses,to establish a pre-disclosure system for the reduction of executives as soon as possible,and to reinforce education for investors to gradually return the stock price to a reasonable level,Fundamentally eliminate the rush to cash executives.