The Positive Research Of Earning Management Based On Corporate Governance

Since the 80's of the 20'thcentury, the western financial academics have payed special attention to the research of earnings management. The issue has becomes one of the significant topics of today's positive accounting research. Earning management is not only accounting behavior, but management behavior ,so we should control Earning management from its.Dued to the natural relationship between the information of accounting earning and corporate governance structure, the ample and perfect accounting information system plays a significant role in reducing the asymmetry of information and the controlling of reverse option as well as that of moral risk, which leads to a situation that corporate governance works efficiently and social resource is distributed properly. Moreover, corporate governance structure is a kind of regulation and arrangement, which manages and controls the running of organizations. Weather it is sound or not has a direct impact on the development of listed companies and capital market. At the same time, it's perfect extent influences the quality of listed company's accounting earnings information. What a pity that China's scholars have not research earnings management together with corporate governance structure until recent years. And what makes worse is that the majorities research applying the method of theoretical analysis with few achievements of positive research. So, the paper aims to does systematic theoretical analysis and positive research on the relationship between corporate governance structure and earnings management.First of all, the paper explicates respectively the conceptions of corporate conveyance structure and earnings management as well as some relative theories. Then based on the framework of the external and internal governance structure, from the point of theoretical analysis, it discusses the relationship of governance structure and earnings management of listed companies. Doing positive research on earnings management can not be independent from models of earnings management. The effect of models will influence the result of research. Based on analyze some models of earnings management, the paper abstains a new model of earning management. Thirdly, beginning with the audit opinions, based on the samples picked from several listed companies whose audit reports had been pronounce to be nonstandard in 2004, from the characteristic of board of directors, positive analysis toward the relationshipof governance structure and earnings management was conducted applying various methods, such as descriptive statistic, logistic regression analysis. Last, some advices are gived to improve corporate governance structure of listed companies with the hope to provide some effective ideas to constraint the action of accounting behavior in listed companies.