Research On Earnings Management's Inducement And Preventive Measures Of Public Company In Our Country

Earnings management is an important subject of the modern accountingtheoretical research. But earnings management itself is not totally an accountingproblem, it involves a series of management and economics problems. Earningsmanagement means that enterprise-administering authority purposefully takes manykinds of methods to achieve the expected earnings on the premise of not violatingaccounting criterions. Along with the development of capital market of our countryand the lag of the relevant laws and regulations, earnings management has begun tospread in our country, and has already caused accounting information to be seriouslydistorted. At present, the study on earnings management is urgent. This paper regardspublic company as the research object, and has systematically studied the productionand the precaution of earnings management.The paper is divided into four parts: First of all, it sets forth the basic theoriesand the trends of earnings management. Secondly, this paper deeply analyses theinfluence factors and production of earnings management separately from the anglesof the formulation of accounting criterion, the corporate governance and thegovernment supervision. Thirdly, based on the statistical analysis of the accountingdata of public company in recent three years, this paper has proved the universality ofearnings management in our country. Finally, combining the inducement of earningsmanagement, this paper proposes countermeasures to restrain earnings management.The innovation lies in three sides. Firstly, combining the concrete conditions ofour country, this paper proposes the inducement of earnings management, and appliesgame theory to analyze. Secondly, in connection with some accounting principles, thispaper studies earnings management in recent years through using positivism andstatistics. Finally, in view of existing situation about the formulation of accountingcriterions, the corporate governance and the government supervision, this paper putsforward a comparatively intact imagination to restrain excessive earningsmanagement.