The Research Of Governance Structure And Earnings Management Of Listed Companies

Since the 80's of the 20th century, the western financial academics have payed special attention to the research of earnings management. The issue has becomes one of the significant topics of today' s positive accounting research. From the cases of earnings management of USA's and China' s listed companies, appearance of the earnings management was partly attributed to deficiencies of corporate governance structure. Dued to the natural relationship between the information of accounting earning and corporate governance structure, the ample and perfect accounting information system plays a significant role in reducing the asymmetry of information and the controlling of reverse option as well as that of moral risk, which leads to a situation that corporate governance works efficiently and social resource is distributed properly. Moreover, corporate governance structure is a kind of regulation and arrangement, which manages and controls the running of organizations. Weather it is sound or not has a direct impact on the development of listed companies and capital market. At the same time, it's perfect extent influences the quality of listed companys' accounting earnings information. What a pity that China' s scholars have not research earnings management together with corporate governance structure until recent years. And what makes worse is that the majorities research applying the method of theoretical analysis with few achievements of positive research. So, the paper aims to does systematic theoretical analysis and positive research on the relationship between corporate governance structure and earnings management of listed companies.First of all, the paper explicate respectively the conceptions of corporate governance structure and earnings management as well as some relative theories. Then based on the framework of the external and internal governance structure, from the point of theoretical analysis, it discuss the relationship of governance structure and earnings management of listed companies. Furthermore, the paper continues to analyze the deficiencies of corporate governance structure of listed companies in China and the corresponding effects on earnings management. Thirdly, beginning withthe audit opinions, based on the samples picked from several listed companies whose audit reports had been pronounce to be nonstandard in 2003, from the characteristic of board of directors, positive analysis toward the relationship of governance structure and earnings management was conducted applying various methods, such as descriptive statistic variant test of average and logistic regression analysis. Last, some advices are gived to improve corporate governance structure of listed companies with the hope to provide some effective ideas to constraint the action of earnings management in listed companies.