Research On Earnings Management Of Chinese Listed Companies Based Motivations

As the role of security market turns to be more and more important, the financial reports, which are offered by the listed companies, have been considered as the most important basis by which people make decisions. And the accounting earning is one of the most important information in the financial reports, so it concerns users deeply. But in recent years, the accounting fraudulent scandals emerge endlessly both in the internal and in the external. Such awkward situation has seriously influenced the full play of the security market's function to distribute resources rationally. Earnings management becomes the focus and attracts the attention of millions of people. So research on earnings management of Chinese listed companies has significant realistic meanings.In the western accounting academia, earnings management is such a subject that has already had a history of more than 20 years. But research on earnings management is just commencing in China. Under the transforming economic system background, the theories of the western may not be suitable in China because of the particularity of the national conditions and economic environment. Even they may be suitable, they must be modified according to the speciality. So the research on earnings management of the Chinese listed companies has significant academic meanings.This thesis has four chapters. Chapter 1 puts forward the incentive and meanings of the research and reviews the related literatures. Chapter 2 interprets earnings management in theory after explaining the basic concepts of earnings management. Chapter 3 analyzes why earnings management exists and studies the motivations of earnings management of Chinese listed companies. Chapter 4 discusses the ways of earnings management to figure out how to manage earnings and proposes some suggestions to limit earnings management.This thesis's viewpoints and innovations include: (1) the thesis classifies the existing research fruits in the domestic and the international based on motivation; (2) the. thesis interprets earnings management through economics, accounting, finance and psychology in theory; (3) the thesis analyzes existing conditions of earnings management through system aspect factors and standard aspect factors; (4) the thesis concludes that security market motivation is obvious in Chinese listed companies through comparative analysis; (5) the thesis proposes to set up value-oriented accounting system, amend accounting standards and perfect supervising index system to avoid earnings management's negative effects. .