A Research On Motivation And Means To Earning Management Of Hanwang Technology Co.,Ltd

With the development of China's capital market,many companies benefit from it in our country,especially the listed company.At the same time,the information disclosure of listed companies has been focused on by the broad investors,so its authenticity and reliability has been a basic requirement for the listed company.As the key of financial statement information,accounting earnings have been used for investment analysis.Today,in order to achieve maximize their own interests or evade regulation,many companies use loopholes in the accounting standards or make real trading behavior to regulate the accounting earnings,which also gave birth to the so-called “earnings management”.This paper aims to reveal the motives and means of earnings management of listed companies,to help the investors to accurately understand the profitability of listed companies and to do more rational investment.At the same time,it also provides policy recommendations to the relevant departments about earnings management system designed.This paper is analyzed around the motivation and means of earnings management.Firstly,it introduces the basic theory of earnings management,including the opportunism behavior theory,contract theory,principal-agent theory and asymmetric information theory,etc..And summarizes the present common motivation and means of earnings management.Second,we found insufficient which the internal and external supervision of enterprise and relevant department laws and regulations formulation exist,according to analyze deeply the motivation and means to earnings management of Hanwang Technology.Include:accounting standards still exist loophole,make accounting earnings more easy;Measure index about “Special Treatment” is too single,increase the likelihood of adjustment profits to avoid “nut”;Detailed and timely disclosure of information of listed companies is not enough,cause enterprise manipulate profit using the projects manipulation;Listed companies internal and external supervision strength is not enough,lead to disclosure of information is not true.Finally,the study puts four policy recommendations about system design,including: revise and perfect the accounting standards for enterprises,perfect the measure index about “Special Treatment” listedcompany,improve the financial disclosure and strengthen the external supervision mechanism.