The Effect Of General Manager’s Characteristics On The Earnings Management Of Listed Companies

In recent years,domestic and foreign scholars have conducted extensive research on earnings management and have made a great deal of research results.Although scholars have different opinions on earnings management,there are some common understandings that the main body of the enterprise’s earnings management is the management of the enterprise.Although the earnings management activities carried out by the enterprises are a legal act,it will reduce the quality of the accounting information of the enterprises.As the earnings management activities are usually led by the management of the enterprise,in which the general manager plays a very crucial role.Therefore,it is necessary to study the influence of the general manager’s characteristics on the earnings management of the listed companies.In this paper,we use the combination of theoretical analysis and empirical research.On the basis of principal-agent theory,information asymmetry theory,human capital theory and high-level echelon theory,this paper studies the influence of general manager ’s characteristics on the earnings management of listed companies.Hoping to provide some new ideas for further research on the impact of executive characteristics on earnings management and the response to earnings management.This article selects the A-share main board listed companies from 2014 to 2016 as the research sample and divides them into state-owned group and non-state-owned group.To calculate the manipulative accrual profit by the modified Jones model to measure the degree of earnings management and as the explained variable of this article/DA/.The explanatory variables of this article are the gender(Gend),age(Age),education(Edu),tenure(Ten)and financial knowledge(Fin)of general manager.Company size(Size),solvency(Lev),profitability(ROA),Sales growth rate(GROW)as the control variables.Through the multiple regression model to study the characteristics of general manager on the impact of earnings management.Through analysis,the following conclusions are drawn: There are earnings management phenomena in state-owned enterprises and non-state-owned enterprises,and overall,non-state-owned enterprises have higher levels of earnings management than state-owned enterprises;The gender of the general manager of state-owned enterprises has little effect onearnings management.The gender of general managers of non-state-owned enterprises has an important impact on earnings management.When the general manager is a woman,the level of earnings management is higher.The ages of the general managers of state-owned and non-state-owned enterprises have little effect on earnings management.The qualifications of general managers of state-owned enterprises have little effect on earnings management.The qualifications of general managers of non-state-owned enterprises have an important impact on earnings management.The higher the degree,the higher the level of earnings management;The term of office of the general managers of state-owned and non-state-owned enterprises has an important impact on earnings management.The longer the tenure of the general manager,the lower the level of earnings management;whether the state-owned and non-state-owned enterprises’ general managers have financial knowledge has a weak influence on earnings management.According to the research conclusions,in order to prevent earnings management,this article puts forward corresponding suggestions: establish a sound corporate governance mechanism;strengthen the supervision and inspection of the general manager of non-state-owned women and general manager of higher education;the company should appropriately extend the term of general manager;stakeholders should Pay attention to the gender and qualifications of the general manager of non-state-owned enterprises.Most of the existing literature studies the impact of senior management team characteristics on earnings management and there is less literature studies the impact of general manager personal characteristics on earnings management.A few scholars have studied the impact of single characteristics,such as the general manager’s age,financial background and tenure on earnings management.Different from the existing scholars,this paper divides the sample into state-owned and non-state-owned groups according to the nature of different property rights to studies the impact of multiple traits of individual managers(gender,age,education,tenure,financial knowledge)on earnings management.