The Research Of Earnings Management About Listed Company Based On Management Buyouts

With the continuous development and increasingly perfection of stock market, kinds of the operation of capital became the focus. And management buyouts (MBO) may become the new favorite in the capital market again after silence several years, and it can play an important role in solution to the chaotic equity structure of companies, state-owned enterprise reform and to reduce the equity agency costs. However, the problems such as asset pricing issues and information asymmetry which lead to loss of state-owned assets in the last MBO wave of capital market are obstacles of development of MBO. The origin of these problems is earnings management by management of listed companies before and after the management buyouts (MBO). Therefore, if we want to avoid the defects in the management buyouts (MBO) process and ensure the development of the management buyouts (MBO), it is important to research the earnings management in management buyouts.First, the paper reviews the process of the development and problems of the management buyouts (MBO) in China, and introduce the significance of our study, related document and research ideas. The second part describes the relevant content of earnings management, including the conception of earnings management and management buyouts (MBO), the means and motivation of earnings management. There are more detailed issues of earnings management to be described. And then puts forward the hypothesis, sampling and empirical test, main method which is the used to test the evidence of earning management. This paper use accruals to analysis the samples to discover the trace of earnings management in the management (MBO) process. Finally, according to previous empirical research we can reach appropriate conclusions, and based on the relevant conclusions to make useful policy recommendations.There are five parts: The first part is an introduction, which reviewed the development process and problems of MBO, the significance of this study, related literature and research ideas.The second part is related content about earnings management, including the connotation of earnings management and management buyouts (MBO), the means and motivation for earnings management. More detailed of earnings management are described.The third part is related to the assumptions and the selection of samples.The fourth part is the empirical test, in this part the accrued profit is mainly used on the selected samples to test the level of earnings management in management buyouts.The fifth part is the conclusion of empirical analysis and policy recommendations. The relevant conclusions based on the previous empirical study and on the basis of the relevant conclusions to make useful policy recommendations.