A Positive Research On Earnings Management And Corporate Governance

Earnings management has become one of the significant topics of today's positive accounting research, and many western scholars applied themselves to the research of it from 20 century 80^th. At the beginning of this century in U.S.A., there took place fake accounts events such as Enron, worldcom etc., which caused more attentions to earnings management. With the development of securities market in our country, the research of the earnings management is developing. Reviewing national researches, they mainly focus on the motivations, types and means of earnings management. This thesis does a positive research on the relation between earnings management and corporate governance, finds out the corporate governance factors that induce earnings management.The thesis first does a systematic summaries and combing on theories of earnings management and corporate governance, including the base of corporate governance, the motivations, types and means of earnings management, the reason of earnings management from the aspects of corporate governs etc.In the third chapter, the thesis involves in the means of earningsmanagement. After comparing the methods measuring earnings management in abroad, the thesis chooses modified Jones Model and adds the variable of capital asset and invisible asset into the model. On the assumption that audit opinions can identify the earnings management of listed companies in some extent, the thesis measures the extent of earnings management and proves the relationship between earnings management and audit opinions.On the relationship between earnings management and corporate governance, a new and systematic research concept framework is set up, which develops explanatory variables and control variables that representing characteristics of board of directors and ownership structures and puts forward 14 phenomena. Tests on these phenomena are made by multiple-variance regression analysis and the corporate governance factors inducing earnings management are found.Finally, the thesis concludes the result of positive research, advanced some countermeasures and some advices to control the excessive earning management.Jiang Ping (Enterprise Management) Supervised by Professor Ge WenLei...