Earning Management Study Of Listed Companies

Earnings of accounting are important contents of finance information about listed companies. It influences not only companies' listing but also changes of stock price. Besides, More and more policies, rules and contracts are based on earnings of accounting. Its authenticity and legality are essential to investors and management departments. They relate to investors' interests, efficient distribution and healthy development of capital markets. Especially accounting scandals taken place in U.S.A startled all of the world. They are bound up with earnings of accounting. Therefore, further study about this field is important on theory and practice.The article has four parts: backgrounds and documents review on earnings management; theory research on earnings management; results and advice of empirical research on earning management. During study, setting up models, putting up with hypothesis, testing and analyzing earning management are done by means of empirical research and finance report in 2001. Study results as followed: The listed companies that were specially treated in 2000 had trendy of earning management. The gains have significant to establish security rules. Although there are policies of quitting from security market, they should be studied because they are only based on earnings of accounting. They should include cash flow and other financial indexes as reference indexes. So costs of earning management will be enhanced. Possibilities of earning management will be reduced. It shouldn't be ignored that listed companies manage earnings by all kinds of measures. It is useless that listed companies increase business profits without converting business mechanism and enhancing companies' quality. Therefore, We should correctly handle earning management of listed companies and master "degree".