Research On Earnings Management In The Equity Incentive Of Joyware Electronics

Under the modern enterprise management system,the separation of ownership and management rights leads to asymmetric information between management and shareholders,which leads to agency problems.In order to reduce agency cost,improve corporate governance and improve corporate performance,equity incentive mechanism came into being.But after a lot of research evidence shows that in the process of implementing equity incentive mechanism,corporate executives may seek their own interests in order to achieve the standard of exercise of power,so as to implement earnings management.Therefore,how to judge whether there is executive earnings management behavior in corporate equity incentive and analyze its specific earnings management means is particularly important.Based on the domestic and foreign theories and literature achievements,this paper studies the earnings management under the equity incentive of Hangzhou Joyware Electronics Co.,Ltd.First of all,it expounds the industry background,basic situation and specific scheme of implementing equity incentive of Joyware Electronics.Secondly,through the performance comparison before and after the implementation of equity incentive,market response analysis,calculation of controllable accrual earnings management and other aspects to judge its earnings management behavior.Then,through the case company under the equity incentive R & D expenses,Management expenses,advance payment,construction in progress and other aspects of the analysis of its equity incentive earnings management measures.After that,from the perspective of performance appraisal factors and executive income maximization factors,this paper discusses the reasons for the earnings management of Joyware Electronics,analyzes the economic consequences brought by earnings management,and reflects the problems existing in the equity incentive plan.Finally,on the basis of case analysis,this paper from the aspects of updating and perfecting accounting standards,strengthening external environmental supervision,standardizing and perfecting corporate governance structure,formulating reasonable equity incentive plan,and so on,puts forward some effective measures and optimization suggestions for listed companies and relevant departments that implement equity incentive plan in China.