An Empirical Analysis Of The Relationship Between Corporate Governance And Earning Management Heoretical Analysis And Algorithm Study On Bi-level Logistics Terminals Planning Model

Earning management phenomena are getting more and more attention frommany kinds of people in our society. Most domestic scholars focused theirresearch on the fields, "whether" and "when" the earning managementphenomenon has occurred. The uniqueness of this paper versus other papersrelating earning management is that it tries to conduct the analyses whilecombing Earning Management and Corporate Governance in order to verifythat the characteristics of Corporate Governance are the intrinsic causation ofEarning Management. The sample of this paper contains the Chinese A share listed firms, whichare suspected to have the motivation for rights offering. The paper defines threegroups of factors for each dimension of Earning Management (EM) andCorporate Governance (CG). Used Current Accruals, Item below the line andRelated Parties sales for measuring EM, and the type of the biggest shareholder,equity structure and the composition of the board of directors for measuring CG.In analysis of the relationship between the factors of EM and CG, the paperbuilds ANOVA Single factor Model, Univariate Regression Model and LogitCross-sectional Regression Model. Also, the paper combines all the resultsabove together to build comprehensive models so that to verify the steadyrelationship between CG and EM. The results of the empirical research prove that CG factors could steadilyand significantly monitor the EM phenomena. And different trails of CG couldbring different influences to the magnitude and methodology of EM. Therefore, the author assumed that the key point to solve the problem ofEarning Management in Chinese capital market is to perfect the Corporate - II -Governance structures. Only by this way, we could expect a well-ordered andhealthy capital market in China.