Research Of Cause Analysis, Identify Measure And Countermeasure To Excess Earnings Management Among Listed Company

Listed company is required to provide high quality accounting information by rapid development of security market, Due to close relationship between earnings management and accounting information, research of earnings management become key attention among investors . creditor and government responsible institution as well as accounting standard instituted department. Intensify of research of earnings management is significant to improve the accounting management and to improve the function of security market resource disposing. Among listed companies, earnings management is widely adopted because of interest of big shareholders and corporation managers. Earnings management become the special accounting behavior and obsess accounting circle. At present time, excess earnings management is highly widespread. The cases of excess earnings management are continuously reported. The text start from the concept of earnings management, conclude the types of earnings management and the difference between earnings management and excess earnings management. Analyze the cause of earnings management by using the economics theory. Illustrate the motivation of earnings management. The time appearance of security market in China is coincided with the phrase of planning economic system turning to market economic system. Chinese security market posses Chinese characteristic as follow. First, a lot of listed company is transformed from state-owned enterprise, second in order to avoid to lose the customers, CPA may make compromise and sign the false audit opinion report. Mislead the user of accounting information Third, in China, initial public order posses planning economic characteristics, such as rating and scale. That leads to IPO and listed qualification become rare resource. It is very important for listed company to keep listed qualification. So the text put forward the main factors that cause excess earnings management among the listed companies in China are the flaw in corporation administration structure, weakness of CPA's inspection and imperfect supervision policy. Based on the analysis, the text summarize the principle and ways to identify excess earnings management. Bring forward the feasible countermeasure that is aimed at the corporation concrete situation, namely consummating the corporation administration structure , modifying the supervision policy, consummating the accounting standards and system, consummating the CPA institution and intensify the enterprise scientific management. Finally make the conclusion and bring forward the further suggestion to the relevant theory and practical issue at the last part of this text.