A Study On Earnings Management And Top Managers Change Of Chinese Listed Companies

Top managers in listed companies are effect in management and decisions with companies. the stabilization of top managers is in favor of the long development of listed companies. The frequency of top manages change is very high . Under the dog-eat-dog situation, the listed companies improve their achievement really. In this paper we discuss whether the listed companies improve the financial index through earnings management, and not through their main operation. Firstly, this paper tells some theory, such as the mean of earnings management , and the property of earnings management, the difference of accounting avenue and economics avenue ,and the function of accounting earnings. On the base of theory , this paper then tells some motivation and some ways of earnings management. The Jones model is the important tool to compute earnings management. In the analysis of earnings management , we trust there are some motivation and chances with earnings management. Under the test, this paper tests the factors of top managers change. The result improves that the change has relation to the index of achievement and the CEO ages. We test the top manager change and the earnings management through abnormal and extraordinary items and discretionary accruals. We draw some conclusions from this test: (1)the listed companies manage the earnings through the abnormal and extraordinary items and the last and before yeas they improve the achievement through increasing the abnormal and extraordinary items. (2) the statistic of listed companies with top manager change is significant with discretionary accruals ,the discretionary accruals is negative in the last year and before year, and the year in change is positive. (3) the difference of earnings management range is not significant with abnormal and extraordinary items and discretionary accruals. However, the range of achievements in the listed companies with non_routine change is larger than the companies with routine change. (4) the change is significant with the rate net asset avenue, namely, the achievement in the change year is worse than the before year, the achievement in last year is better than the change year.