Research On The Quality Of Financial Position Of The Enterprise Under The Condition Of Real Earnings Management

The quality of financial position of the enterprise has been paid much attention by the social from all walks of life,especially stakeholders.However,the earnings information is the core of their common concern.The earnings management is helpful to improve the information content of accounting earnings.Previous earnings management has been focused on the accrued items way of earnings management.With the development of high quality accounting standards and the strengthening of external supervision,the traditional accrued earnings management has been extremely restricted.To achieve earnings targets,managers tend to use earnings management through real transactions.This article analyzes the quality of financial position of the enterprise under the condition of real earnings management through empirical analysis method.The article select the A-share listed companies during the period 2010-2014 as samples,and verify the existence of real earnings management of listed companies in China by using the model invented.According to the comprehensive index of real earnings management constructed by the article,I have discussed the degree of manipulation.And then,the paper analyzes the company of the highest level of manipulation by multiple variable regression analysis.The result shows that production manipulation has the greatest impact on real earnings management,and also used most commonly by managers.Based on the above empirical results,the article make a comprehensive analysis for the company above from capital quality,the quality of assets structure,profit quality and cash flow quality.Meanwhile,in order to make the results have comparability,I also choose a company of the least level of real earnings management as a comparison.The case study indicates that the quality of financial position of the enterprise under the condition of real earnings management has good overall performance,and indicates a trend from stability to the better.However,the asset-liability ratio is relatively high,the enterprise has certain financial risks,and the quality of capital structure should be further optimized.