Research On Earnings Management Of The State Holding Listed Company

Earnings Management is the hot issue in the accounting field, which has always been studied in the past 20 years. It is generally acknowledged that earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stockholders about the underlying economic performance of the company, or to influence contractual outcomes that depend on reported accounting numbers. This paper proceeds from the perspective of property right economics and argues that the property right arrangement actually stipulates the behavior rules that the people should obey when they associate with each other. The structures of property right influence the individual behavior in the organization. Different property right structure results in different behavior to the same individual. Because the information of accounting earnings is the basis for the enterprise's managers to remove the responsibility of commissioning and for the persons interests-correlated to the enterprise to make decisions. Its supply and demand are affected by enterprise's property right structure invariably. Therefore Earnings management occurs exactly because of the peculiar property right structure of the modern enterprises. State-holding listed company in China possesses special property right structure, which determines the unique characters of motivates and methods on their earnings management.The paper is organized as follows:Chapter 1, the summary of earnings management, based on summarizing existing documents discusses the meaning and key characteristic of earnings management, how it is represented in practice and what is its theory basis.Chapter 2, earning management in the perspective of property right economics, proceeds from the primary concept and theory of property right economics, based on the property right system of modem enterprises, dissertates that the essential cause of earning management is the arrangement of property right. In addition, the essence of accounting standards and the limitations of independent auditing provide conditions for earnings management.Chapter 3, characteristic of the property right structure and earnings management in state-holding listed companies, focuses on the situation of state-holding listedcompanies in china, probes into the characteristic and defect of their property right structure emphatically and their peculiar motives and methods of earnings management.Chapter 4, the suggestions to regularize the earnings management in the state-holding listed companies, following the theory discussed in the first two chapters and combining the existing problems in state-holding listed companies mentioned in the chapter 3. gives suggestions from five aspects: the arrangement of external property right, internal administration structures, the accounting standards, auditing supervision mechanism and security market supervision.This paper has the following innovations: (1) Apply the views of property right economics to analyze the earnings management. (2) Study the special motives and methods of earnings management of the state-holding listed companies. (3) Discuss the earnings management behavior of state-holding listed company based on its property right characteristic and defect.