An Analysis Of Earnings Management In Our Country

The subject of earnings management has been studied for more than twenty yearsin western accounting theoretical circle. With the development of stock market andthe surging of listed companies in our country, earnings management turned up inlisted companies which have become one of the new subjects of accounting theoryand practice in our country. But in our country it has been abused by listed companiesthat its negative effect exceeds its positive effect. Now earnings management hasbecome one of the most important causes for accounting information distortion. Inorder to solve the problem of accounting information distortion and to promote thedevelopment of the stock market, it's necessary to manage the earnings managementin listed companies. Considering this point, the thesis tries to study the subject fromseveral major perspectives.The thesis bases on the research achievements of domestic and abroad earringsmanagement, uses of the earnings management's base theory, analyses systematicallybehavior of listed companies' earnings management, discloses completely themotivation and the method of listed companies' earrings management, and uses theGame theory to analyze the relations between listed companies and supervisiondepartment of accounting. And then, I analyze the income information of 38 listedcompanies that was approved to have the right of allotment of shares by SecuritiesRegulatory Commission, and find that one Chinese public company obtain theallotment of shares qualification through earnings management. Finally, I put forwardsome strategies to solve effectively the problems of listed companies' earningsmanagement in our country. It is important for maintaining the legal equity ofinvestors, purifying the environment of investment in the security market andpromoting the orderly operation of the security market.