Empirical Study On Accounting Policy Of Asset Depreciation And Earnings Management

Entering 21^st centuries, the economical environment that companies face turns worse, which makes asset depreciation be one of the hot accounting problems around the world. From the annual reports of listed company in resent years, the asset depreciation of accounting policy has already become one of the tools which the listed companies manipulate the earnings. So, we need to investigate the behaviors of the listed companies' earnings management in the aspect of asset depreciation.In the view of current research condition, the domestic researches on the empirical study of asset depletion are not much, which can not enclose the exact motive to implement the asset depletion in loss listed company. In order to investigate the situation of asset depreciation in loss listed companies, this paper puts forward five assumptions to certificate the fact that the loss listed companies in China manipulates the earnings by asset depreciation of accounting policy in order to avoid loss again in coming year. This paper also proves that the obvious factors which affect the behaviors of loss listed companies are current ratio, asset turnover ratio.There are 5 parts in this paper. The first part is a preface, discussing the problem, research background, and research method and research frame of the paper. The second part is the research overview. The third part is the basic theory on asset depreciation of accounting policy in China, which discusses the development of asset depreciation of accounting policy and the options the loss listed companies can choose from the accounting policy give. The fourth part discusses the empirical study on the implementation of asset depreciation in domestic loss listed companies, which also proposes 4 assumptions, the research method, the data source, the results of empirical study and the analyses of the results. The fifth part is to propose the conclusion, suggestion, and the research limit, and also puts forward direction of further research.What's more, with the development of the stock market, and the new regulation of asset depreciation, it's necessary to do further research on this subject.