The Research On Distinction And Restriction Of Profit Manipulation For Listed Companies In China

In the history of the accountant development,since the profit index is choose as a measure of performance,the reward for the manager is based on financial performance. Profitability Manipulation is one of the puzzle problems in the Stock Market;it is not harm the benefits of the investors,but also influence the function of securities,which can maximization the resource. So this is the reason that many foreign governments and many scholars take special emphasis on profit manipulation. Almost all the profit manipulation action in China brings unfavorable effects on Securities Market,so they must be regulated.This paper analyses the discrimination mode and regulation measures of manipulation profitability of some companies by four sections. Firstly,since the behavior theory be used as a tools to analyses the profit manipulation,a clear explanation on the essence and character of profit manipulation and an objective function be put forwards. It is shortly-term and uncertain that profit manipulation has different expression which is being effected by different motions. The phenomenon of the profit manipulation is disappearing accompanied with a certain motive. Secondly such as Information Asymmetry,Market Failure,Incomplete Market,compensation Plans and Corporate Governance Structure and so on economic theory be used to analyses the incentives and exterior of the singleperformance-PROFIT. A new mixed measurement of performance is beingbuilt to measure the mangers on base of not only short-term versus long-term performance measures,but also financial performance and non-financial measures of performance. It is suitable that using the mixed measures of performance such as customer satisfaction,market share,supplier relationships,innovation measures. A distinction mode for profit manipulation is being structure include contrast between cash flows and accrual accounting,the analyses of profit resource,the proportion of bad asserts and the proportion of the relative-party payables. The guiding ideology and method is being sum up,which has been drawn from others' research results. In order to correct the distortion,not only incomplete systems of issuing,governing and correct rights in capital market should be correct,but also accounting action of list companies and auditing action of CPA should be appropriate or be blaze new trails. It proposes regulation measures to fight against profit manipulation.