A Research On Earnings Management Of A-share Listed Companies

It has attracted extensive attention of the society that financial frauds of some Ashares listed companies have been successively exposed in recent years.Financial fraud will be easily spotted for it is illegal while earnings management is legal for earnings management is a relatively covert way to affect the authenticity of corporate earnings reflected by the annual financial statements of listed companies.Earnings management which includes accrued earnings management and real earnings management is more difficult to find because it isn’t beyond accounting criteria,but it may also mislead loan banks or investors to some degree,thus causing loss to them.This essay has conducted a research on the measuring algorithms of accrued earnings management and real earnings management,quantitatively analyzing the variation of accrued earnings management and real earnings management of A-shares listed companies during the years from 2010 to 2020.Even though there exists some fluctuation,yet accrued earnings management and real earnings management are generally on the decline.This suggests with the supervision on Chinese A-shares companies by CSRC and its relevant departments intensified,the annual reports of Chinese A-shares companies can reflect the real operation states of A-shares companies better and better on the whole.This essay has also researched the recognition methods of financial frauds,has applied earnings managements to their recognition,and has used the outliers of accrued earnings management or real earnings management as the annual report’s risk identification to assist in detecting financial frauds,thus helping avoid loss for loan banks or investors.When financial frauds don’t exist,as data indicators,accrued earnings management and real earnings management can provide references for loan banks or investors,assisting to analyze the real states of annual report which reflect the operation and profitability of A-shares listed companies.