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

With the development of China's securities market, the problems of earnings management appear gradually which have become one of the central researches of our country's accounting areas. Local scholars have made relatively sufficient statistical research on the existence of corporate earnings management and "when" the earnings management phenomenon has occurred, but lack in-depth disscussions on the factors which can affect the earning management. By taking into account the latest developments of earnings management of listed companies in China and beyond, this paper pays its attentions to the relationship between the ownership structure and earnings management. This paper consists of six parts.Chapter one, which is the part of Introduction, explains the research background,and briefly reviews earnings management research in home and aboard.It also clearly purposes the research approach and the ways of thinking.Chapter two briefly reviews the concept of earnings management, Then it expatiates the motivations and means of earnings management as well as the measurement methods are, reviewed the econometric models of earnings management.Chapter three discusses the ownership structure's impact on earnings management from the point of theoretical analysis. Using statistical data to describe the situation of Chinese equity structure. Then, the paper brings forward five hypothesis based on the relationships between the earnings management with ownership structure, ownership characteristics, ownership concentration degree,etc.Chapter four chooses the listed companies which were normal on trade in 2009 as samples. Based on the analysis of existing earnings management measuring models, we made come changes to the JianQiao Lu model, which were used as a new model to measure the earnings management, it makes multivariate regress analysis to earnings management, ownership structure and controlling variables. The results show that:1. The owning rate of the first shares holders have a positive correlation between earnings management.2. there is a positive correlation between earnings management and the ratio of the state shares.3. the ownership balance degree is positively associated with earnings management,4. institutionalownership is positively associated with earnings management.5. the proportion of tradable equity and earnings management does not have remarkable correlation.6. Corporation size has positive correlation with earnings management degree.Chapter five based on the above research conclusions, puts forward four advice for earnings management:(1)optimizing the ownership structure, including dispersing shareholding, especially reducing the state-owned stocks steadily; (2)actively cultivating and regulating institutional investors. (3)The development of diversified forms of ownership, increase the ownership balance degree. (4)Perfect the securities market supervision.The mainly Innovation of this paper as follows:This paper analyses step by step using normative study and positive study, based on the conclusion of the normative research, this paper design five hypothesis, and using the positive research method to do the validation. At the end of China's Share-trading reform, this paper choose 2009 as the sample, Focus on the ownership structure variables influence degree of earnings management, add "expense" to the Lu JianQiao model, so the new model can better explain China capital market of earnings management level.