An Empirical Research On The Correlation Between Corporate Governance Structure Of Listed Companies And Earnings Management

With the rapid development of securities market, earnings management is increasingly concerned by society and more and more scholars began to study it. The degree of perfection of corporate governance structure restricts the quality of accounting information disclosure, and it also restricts the extent of earnings management. This paper tries to precede Corporate Governance, researches on the relevance of earnings management and governance structure of listed companies in China, propose the improvement strategies of governance structure of listed companies, in order to regulate the securities market and restrain the degree of earnings management.First of all, by reading relevant literature and draw on previous studies, summarized the studies of earnings management and corporate governance, leads research topics; secondly, researched on the relevant theories of earnings management and corporate governance, analyzed the relevance of earnings management and the elements of corporate governance structure and made 9 assumptions, lay the foundation for empirical research; thirdly, selected samples of Chinese listed companies, used modified Jones model as measure of earnings management model to measure earnings management, and put it as the dependent variable and the elements of corporate governance as independent variable to regression analysis, and drew conclusions of this article:ownership concentration positively correlated with the degree of earnings management, the proportion of outstanding shares negatively correlated with the degree of earnings management, the proportion of state shares positively correlated with earnings management, proportion of independent directors negatively correlated with earnings management; corporate executive compensation negatively related with earnings management; the proportion of institutional investors and earnings management is not relevant; whether the two positions of chairman and general manager are 2-one post positively related with earnings management; the board size and earnings management is not relevant; the size of supervisory board and earnings management is not related. At last, based on the conclusion, gave the recommendations:deepen the reform of Equity Division, increase the proportion of outstanding shares; reform of State Shares; improve the role of institutional investors in listed companies; strengthen the effectiveness and independence of the Board of Directors; play the more important role of the board of supervisors; establish effective incentive and restraint mechanisms of management.