Research On The Motivations Of Earning Management In Enterprise

The accounting objective is supporting useful information for those related people to make investment decisions. Since the behaviors of earning management are inevitable for the accounting standard's imperfection, the quality of accounting information is badly damaged that is not useful for those related people. The study of earning management has becoming a world-wide issue since 1980s, and it is also difficult to solve. The behaviors of earning management are pretty common in China's stock market which do harm for the market economy. The purpose of this paper is to provide variable solutions for the government and department with deep analysis of the incentive of earning management.The structure of this paper is below. The starting point is the basic incentives of earning management, which are the pressure of capital market, anti-monopolized and government-control, and contract based on accounting information. After that this paper concludes the inherent incentive and ultimate incentive of earning management with a deep analysis of the value-orientation of entrepreneur and Maslow's demand levels theory. And then makes an empirical study on the incentive of earning management on Chinese listed companies with the panel data of Shanghai Stock Exchange Market and Shenzhen Stock Exchange Market. Finally provides the conclusions and suggestions to solve the problem.The main conclusions and contributions of this paper are below.1. Combines the value-orientation of entrepreneur and Maslow's demand levels theory with the incentives of earning management, and brings the inherent and ultimate incentives of earning management based on the basic incentive of earning management.2. Makes an empirical study on the incentive of earning management on Chinese listed companies with the panel data of Shanghai Stock Exchange Market and Shenzhen Stock Exchange Market.