The Positive Study On Effects Of Ownership Structure On Earnings Management In China

The earnings management in Chinese listed companies is due to the flaw of corporate governance. All of those, the flaw of ownership structure is the main cause. The ownership structure is composed of ownership concentration degree and ownership characteristics. And the ownership structure is just a system about assigning the control power among the shareholders. Because the ownership characteristics affects the owner's behavior and the ownership concentration degree impact the owner's power, so that the ownership structure affects the earnings management.This paper firstly analyzes the main theories about earnings management. The Chinese listed companies use earnings management to financing, preventing unlisted and having little tax. The earnings management depends on the flaws of ownership structure. This paper analyzes that the ownership structure affect the earnings management in two sides, the one is the ownership concentration characteristics and the other is the ownership concentration degree. The most ownership structure of Chinese listed companies is dominant shareholder. Because in the companies controlled by state-owned shareholder, there isn't a real person burden the risk and the owners don't concern the company, so that the manager's behaviors are out of...