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China's Listed Companies Performance Manipulation

Posted on:2003-10-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:H LiuFull Text:PDF
GTID:1116360065462059Subject:Investment economy
Abstract/Summary:PDF Full Text Request
Tbis dissertation is focused on the earnings manipulation problem ofChinese listed companies in the Chinese stock market. It defines the relevantconcepts, introduces the research methods concemed in and out of China, dePicts thecharacteristics of the Chinese accounting system, analyzes the causes of this problern,exposes the manipulating methods, and provides some suggestions to curb theproblem.To begin with, some concepts, such as eamings and manipulation are definedand compared with other concepts, such as errof, staff fraud, management fraud, andeamings management. Some relevant theories, academic schools, and researchmethods domestic and abroad, especially the prevailing empirical research method inaccounting, are reviewed.Secondly, this paper describes the causes of intemational accountingdifferences, different accounting mode classifications, and the characteristics of theChinese accounting system. Based on the above motioned, it shows what should bethe major quality characteristics of the Chinese corporate financial information, andwhy procedural rationality rather than substantive rationality should be the criterion toidentify the truthfulness of the Chinese financial infOrmation.In addition, the problem of earnings manipulation in China results fromnine factors, including: the limitation of financial information itself, imperfectlless ofresearch method, stock market being the simulation of real economy, moremanipulation benefit than costs, explanation from the view of information theorypoor corporate governance, weakness in the equity structure, incaPability of board ofdirectors, and rent-seeking phenomenon resulting from the improper management ofthe government.How do the Chinese listed companies manipulate financial infOrmation?The answer lies in one hundred and eleven cases, illustrated case by case, whichinvolves the details of accoUnting techllques, disclosure of mhaPulators' motivations,analyses on the financial risks, illtrOduction of the relevan Chinese financialregUlations, and the effects of different mwhpulation methods on the financial rePortsand the infOrmation users.TO conclude, ths paPer exPlains the quality regUlation mechAnsm on thefinancial information disclosure, suggests how to curb the endngs manipulationproblem in tWelve aspects, and provides the investors with some strategies to contrOIthe risks in the stock market.
Keywords/Search Tags:Empirical Accounting,Financial Information,Earnings Management,Eamings Manpulation,Manipulation Methods,Causes of Manipulation, Strategies.
PDF Full Text Request
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