A Bird's Eye View Of Earnings Management From Enron Corporation's Bankruptcy

In recent years, corporation's earnings have been highlighted by investors, managers, debtors and governments. People pay more and more attention to corporation's earning and earnings management has become the hot topic in accounting theoretical research. In this paper, Enron corporation bankruptcy is connected with earnings management in order to make earnings management become a real concept, and this paper reveals the current significance of Enron case by analyzing causes of Enron Corporation's bankruptcy.This paper includes five part.Part one is introduction, which states the background, orientation, approaches, objectives, logical route and possible originalities of the research in this paper.Part two is general outline: it introduces the genesis of earnings management research and the concept of earnings management. Four authoritative definitions of earnings management are analyzed respectively. It analyzes Earnings Management related to Earnings manipulation.Part three introduces " Enron case". It reviews Enron Corporation's development history from 1986 to 200land talks over Enron Corporation's Earnings Management measures: Enron corporation managed earnings by a series of complicated partner transaction. Enron Corporation camouflaged debt and boasted earnings under partner transactions in order that the company was looking better on paper than it had. Also, it analyzes two motives of Earnings Management related to Enron Corporation, from which we look for causes of Enron Corporation's Earning Management.Part four analyzed the reasons for Enron's collapse respectively, and it pointed out who should take the responsibility on this case and analyzed the effects which Enron corruption has taken on the American Society, so this paper can gain an insight into administrative regulations and find the drawbacks of supervisory rules.Part five discusses the inspiration to Chinese society from Enron's bankruptcy, and it gives some advice and suggestions to Chinese accountancy system. Also, it makes the conclusion of the paper.