Research On The Relationship Between Successive CEO And Earnings Management

In the rapid development of the global economy today,the change of CEO of listed companies is more and more frequent,so the study on the relationship between CEO change and earnings management of listed companies,and the significance of study on the relationship between the different sources of the successor of CEO and earnings management is very important.The research on this problem can not only provide financial information,so that investors can understand the status of the company in advance of a series of corporate governance,in order to maximize the risk averse,reduce investment losses,protect their own interests.Focusing on the whole society,it provides reference to the relevant regulatory authorities for the supervision and management of the industry as well as for the formulation of laws and regulations.Based on the research of integrated Polytron Technologies Inc and GCL geeya Technology Co.Ltd.data,to explore the relationship between CEO changes and the influence on earnings management,and further discusses the relationship between earnings management and the influence degree of CEO source and succession.Case study results show that,for the expectation maximization of their own interests and establish a good occupation factors managers in the industry,the successor of CEO usually go through in succession in a substantial reduction in profits,and then reversed in the second years of earnings management.Succession is divided into two categories:internal promotion and external recruitment,so according to the classification of succession succession of CEO in the study,and then the comparative analysis of different succession and earnings management relationship and the degree of influence.Through a series of comparative analysis,found that compared with the external recruitment of successors,the internally promoted successor CEO took a higher degree of earnings management.Through the research and summary of the above problems,this paper puts forward a series of suggestions to curb the earnings management of listed companies,so as to make China's securities market develop and develop more steadily and steadily in the world trend.The healthy development of the market requires both enterprises to strengthen their own constraints,and also the supervision of the securities regulatory commission.