The Research On The Relationship Between The In Service Consumption And Earnings Management Of Listed Financial Companies

Earnings management has become a hot issue in research of financial accounting,both at home and abroad on the study of earnings management has been enduring,after in-depth research and analysis,have two necessary conditions of earnings management,a friction refers to the contract,the other one is refers to the communication of friction,if there is no friction between the principal and agent,the communication between the two parties are completely transparent,so the client can fully understand and be able to use information,the information asymmetry situation would not have happened,earnings management is not exist too.The financial industry is a special industry,like countries occupy the important position all the time,our country is the world’s biggest savers,financial also is very important in our country,as the domestic financial market reform continued to deepen,to enhance our country’s economy and financial strength,the influence of the financial industry of our country is more and more important.But whichever industry there are on-the-job consumption and earnings management behavior,although this year to have a lot of literature in the research of on-the-job consumption or earnings management,but there is few research。From the 80 s of last century,earnings management has become a hot topic in domestic and foreign research,communication friction and contract friction is the cause of earnings management.As the shareholders and management between the occurrence of contract friction,communication and communication is not transparent,shareholders can not fully understand and master useful information,earnings management in the case of information asymmetry generated.Listed companies by arbitrarily choose,change and use of accounting policies to manipulate accrued profits,damage the interests of small and medium shareholders,small investors caused huge losses,affecting the healthy development of capital markets.The financial industry has become an important part of the national economy,its active consumption,earnings management and other issues also exist,and gradually aroused people’s attention.Financial industry listed companies have industry monopoly and executive identity of the dual characteristics of executive spending and earnings management is closely linked between.When the executives are not satisfied with their own fixed salary,they will choose to spend their own income to improve their own benefits,the pursuit of their own benefits to maximize,which undermines the company’s interests and benefits,this time the executives in order to whitewash the report will Use information asymmetry loopholes to take the form of earnings management.By studying the management of active consumption and earnings management of financial listed companies,we can fully understand the motivations of earnings management in the financial industry and the intrinsic relationship between job consumptionand earnings management.Using the regression analysis method to study the relationship between the on-the-job consumption and earnings management of financial listed companies,the main conclusion is that the company lists the cost items in the financial statements,such as the customer’s hospitality and the company’s office expenses.But the other costs are almost unspecified,the boundaries of on-the-job consumption are more vague,the concealment of the on-the-job consumption and the ambiguity presented are the opportunities for senior management decision-makers to be able to dominate by subjective will Earnings management,damage the interests of the company;senior management decision-makers of the company’s higher level of active consumption,the higher the level of earnings management;executives lagging behind a higher level of on-the-job consumption,the company’s current level of earnings management is higher;Compared with non-state-owned enterprises,the higher the level of management decision-making and the level of in-service consumption of state-owned enterprises,the higher the degree of earnings management.Therefore,the government regulators should strengthen the macro-management of financial listed companies,strengthen external supervision,reduce the information asymmetry caused by the senior management of the company to eliminate the negative impact on the performance of the company’s earnings management and give full play The role of the Commission,a wide range of enterprises to require information disclosure,improve the scope of information disclosure,severely punish the enterprises not disclosed in accordance with the provisions,so as to prevent the generation of earnings management.But also need to establish and improve the accounting system and the structure of corporate governance,and only establish a sound and perfect high-quality accounting system,in order to avoid listed companies in non-monetary transactions,related party transactions,asset restructuring and other above a larger operating space,The financial information will be more transparent,so that the use of financial information investors can get more accurate information to avoid the degree of earnings management to deepen.Compared with the similar research results,there is some innovation in the research content and entry point,but there are some deficiencies,such as the science of on-the-job consumption measurement to prove,sample few and so on.