Our securities market is comparatively young, and in the process of economic shunting, our listed companies will confront many accounting and financial problems, of which earnings management is a most important aspect. Although the study on earnings management has accumulated abundant experiences and plentiful literatures, it can not be applicable for our country. The paper tries to base itself on status of our country and exemplify listed companies to make a profound study and discuss on our actuality about earnings management, then puts forward relevant solving countermeasures, hence prompts the sound development of securities market.Firstly, using the method of combining theory and practice, the paper defines the connotation of earnings management and clarifies the differences between earnings management and profit manipulation, then opens out the essence of earnings management. Secondly, using the method of qualitative and quantitative analysis, the paper starts with demonstration and mathematics model to analyze the annual reports from 1999 to 2001, in which way themotivations of earnings management in our listed companies have been verified, that is, to cope with some monitor policies. In addition, the paper applies many cases to open out vary means for earnings management, and puts forward two ways to identify them. As many new accounting polices come on in 2001, which has affects earnings management a lot, the paper catches the new trend in time to prove new accounting polices have restrained the room of earnings management to some extent in virtue of large amounts of survey data. In the end, based on the successful experiences of solving earnings management in and out of seas, the paper puts forward some countermeasures and suggests, which are provided with good feasibility and reference value. |