Study On Influence Factors Of Listed Companies' Profit Manipulation Behaviors In China

The security market is the place that issues and trades the security such as stocks, bonds etc. The security market of our country appeared and developed with the promotion of the economic system reform. From the issuance of the treasury bill in 1981 to the establishment of the Shanghai bourse in 1990 and Shenzhen bourse in 1991, our security market has obtained a overall and fast developing situation. The positive role to social economic which the development of our security market brings is obvious day by day, such as expanding the channel of the enterprises' financing, improving the use efficiency of social fund, realizing rational distribution of social resources, etc. Though the security market makes enormous impetuses to the development of social economy, but the bad controllability and heavy risky characteristic determines that it might make the negative effects to social economy too. Many listed companies utilized the imperfect management and supervision our security market is now existing, adopted all sorts of means to manipulate profit and made fraudulent profit, which damaged investors' interests, influenced on the sound development of the security market.Many scholars made researches on profit manipulation behaviors of the listed companies, most of them concentrated on whether the profit manipulation behaviors of the listed companies existed and the motivation of the listed companies. Based on anterior studies, this article analyzes the factors profit manipulation behaviors of the listed companies systematically of our country, puts forward some measures to suppress profit manipulation behaviors of the listed companies according to these factors. The main content and points are as follows:(1) The corresponding theory analysis and the profit manipulation behaviors the listed companies showing. This article regards limited theory, the contract theory, consignment and agency theory and information asymmetry theory as the foundations to study profit manipulation behaviors ofthe listed companies and the factors that caused them. The listed companies utilized all kinds of means to manipulate profit, including legal means such as accounting policies choosing and various illegal means, such as adding income fraudulently, regulating infrequent profit, reorganizing assets, connecting transaction, government allowance, etc. In our country, most of the profit manipulation behaviors of the listed companies showed rationing shares, heavy losses, venial losses. Greatly positive study of many scholars and many punish announcements that the Securities Regulatory Commission released indicated that the profit manipulation behaviors of listed companies in our country are very common.(2) Analysis about the factors caused the listed companies' profit manipulation behaviors in our country. The factors caused the listed companies' profit manipulation behaviors are great. Such as the interests driving of the listed companies themselves, the listed companies' stock financing partiality, the imperfect security supervisory system, the interests driving of government and the intermediary machinery, the accounting background the listed companies exists. The interests driving of the listed companies themselves is the basic reason of the behaviors. The listed companies' stock financing partiality is the direct reason. Various kinds of reasons such as the historical reasons, the imperfect of the companies' administration structure and system policies caused the listed companies' strong stock financing partiality. A large number of profit manipulation behaviors which caused by stock financing motive indicated that partiality of stock financing is the direct inducement of these behaviors. The supervisory system becomes the decisive reason. As supervisory system of the securities plays a decisive role on regulating and restricting the profit manipulation behaviors of the listed companies, but the imperfect of the supervisory system also becomes the decisive factor of the listed company to manipulate profit. These supervisory systems include the issuance of stocks management system, delisting system and various kinds of restraint systems, etc. The interestsdriving of the intermediary institutions themselves become the outside emerging encourage factors of listed companies to manipulate the profit. But the accounting background that the listed companies existing provides probability for the profit manipulation behaviors. Among various kinds of factors, the supervisory system factor become the most important one, including securities issuing management system, delisting system and various kinds of restraint systems all play decisive roles on the profit handle behaviors of the listed companies.(3) Corresponding measures. After analyzing the factors, it put forward some corresponding measures in the last part, including: completing company's administration structure, widening the financing channel, etc. which are put forward against the direct inducement, partiality of stock financing. It also include completing the stock issuing system, delisting system, strengthening supervision, etc. which are put forward against the imperfect of the supervisory system of the securities and completing the certified accountant's system, accounting system and accounting criterion, etc.The article discussed the factors caused the listed companies' profit manipulation behaviors systematically. In discussing the supervisory system factors, based on anterior studies, the article proved the effect that the rationed shares policy on the profit manipulation behaviors. And though games between the listed companies and Securities Regulatory Commission, it puts out that some questions such as the supervisory policy is imperfect, the punishment is not severe, etc.