The Empirical Research About The Impact Of Earnin Management On Corporation Performance

With the development of China's economy and continuous improvement of the capital market,more and more listed companies anticipates in China's stock market to bring new impetus and vitality.The company's regular financial reports have the ability to deliver the business and financial results to stakeholders,but information asymmetry enables managers to publish information that is beneficial to themselves,hide and modify the bad information.The existence of earnings management is a general and objective phenomenon,the existing research include institutional incentives,methods,motivations and influencing factors.The impact of earnings management on the company's future performance has not yet formed a theoretical system,especially there are few studies on the economic consequences of earnings management for executives under different motivations,and the conclusions are not consistent.Therefore,this paper explores the economic consequences of different types of earnings management under different motivations.First of all,this paper summarizes the concepts,influencing factors,motivations of earnings management and the concept and evaluation methods of corporate performance,and summarizes the relevant research of scholars at home and abroad.At the same time,it also explains the theoretical basis,mainly from the contract theory,signal transmission theory and principal-agent theory.Then,from the three motivations(capital market motive,contract motive and political motive),the corresponding assumptions are made on the impact of the accrual-based earning management and the real activity management on the future performance(financial performance and market performance)of the enterprise.It is assumed that the corresponding research design is put forward and the corresponding model is established and the empirical analysis is carried out.The conclusions are as follows: under the motive of the capital market,the earnings management based on the enterprise equity refinancing is related to the business performance of the enterprise in the short term.However,there will be a obvious reversal;and based on the loss of the company's earnings management behavior,which conducive to the company's long-term performance growth,has played a positive role in the transmission of information.Under the contract motive,the long-term impact of the earnings management behavior based on the debt contract on the market value of the firm is negative.The earnings management behavior under the avoidance motive is often the negative profit adjustment when the expected tax rate decreases,and its effect on the future performance of the enterprise is not significant yet.Finally,make suggestions from the aspect of internal management and external supervision to promote the enterprise and the market better development.