Coporate Governance Under The Institutional Investors Participating Imapct Of Earnings Management

Earnings management has seriously affected the quality of external financial reporting of listed companies, and damaged the interests of users of external financial reporting of listed companies, it is an important area of empirical accounting research field since two decades ago in the West. With the growth of China's securities market, the issue of earnings management of listed companies are also emerging, which also caused China's accounting theory and practice concerning. At the same time, The institutional investors in China securities market and development, institutional investors in the certain degree actively participate in the management of listed companies. so by way of empirical test the participation of institutional investors in corporate governance and earnings management relationship is important.The article combined with corporate governance, institutional investors and earnings management and related research theory, this paper proposes a "institutional investors in the certain degree involved in the governance of listed company, its shareholding percentage, the higher the help improve the governance of listed company level; the company level of management, the higher earnings management level is lower:machine institutional investors to participate in corporate governance and listed companies' earnings management are negatively related" the three theoretical assumptions. On this basis, according to the principle of multiple regression model to design research model, the choice of listing of shares held by institutional investors after the massive Shanghai and Shenzhen 300 Index constituent stocks of listed companies from 2007 to 2009 (excluding do not meet the sampling criteria 96) Data, two-stage least squares regression method and other methods of corporate governance, institutional investors and earnings management relationship between the three empirical studies to find out more about the relations between the direct and more reliable empirical evidence, after the share reform era so as to have the participation of institutional investors in governance of listed companies and the relationship between earnings management studies provide some empirical conclusions.The article Full breakthrough of the traditional research only consider the corporate governance and earnings management, institutional investors and earnings management ideas, the institutional investor and corporate governance studies combined with the impact of earnings management, so that a more comprehensive study of the issues, better able to explain Since 2005, institutional investors hold large-scale case of Listed Companies change in corporate governance and earnings management changes.