The Research On Management Stock Holding And Earning Management

The current and long-term operating benefits are influenced by the terms in contract of salary of managers, the more the benefits, the more their salary, which tempt them to manipulate the benefit for personal purpose. This article focuses on the effect of the system of stock held by managers on the motivation and behavior of earning management and give full proof process in terms of theory, mathematic pattern and practical proof.It has firstly cited the existing results in literality and founded the topic: the management holding stock system can influence the motive and behavior of earning management. Secondly, based on the background of management contract of our country, the annual salary and the annual salary plus stock holding system was patterned to prove the topic: the management stock holding system does partly influence the motive of the earning management. At last, part of the listed companies at the ShenZhen exchange firm is sampled to try to find the proof that supports the topic. Unfortunately, I failed to find the obvious evidence that supports my opinion because of the variety of the incompleteness of the capital market and the motivation system of our country.