The Empirical Research On The Accounting Policy Choice Based On Earnings Management Of The Listed Company

Accounting policy choices is an important aspect which affects the quality of financial information. The choice of accounting policy is throughout from the recognition, measurement, recording to reporting which is composed of the entire accounting process and it is also can be said that the process of accounting policy choice is the process of accounting and financial report is the result of a series of accounting policy choices. It not only affects the economic decisions of stakeholders, distribution of wealth, but also affects social efficiency and effectiveness of resource allocation. Therefore, the study of the importance of accounting policy choice behavior has become increasingly prominent and it will become an significant research fields of accounting issues.The study takes the method from the basic theory of this problem step by step to the deduction of specific ideas. First, describes the accounting policy choice theory based on earnings management, including earnings management objectives and means, the concept of accounting policy choice, the basis and the choice of accounting policies under the objectives of earnings management, including the accounting policy choice of the West "the three motives, "and the Chinese accounting policy choice of specific motives in the current economic environment. Next, establishes assumptions based on the above theoretical analysis of the West and China and do the empirical analysis of the listed company to have a more understanding of listed companies' behavior. Finally, proposes a few recommendations for accounting policy choice to the behavior problems of listed companies. The results show that accounting policy choice in China is far from rational and policy-oriented that "Shell Resources" and allotment motivation is an indisputable fact.The empirical studies include single-factor test and multiple regression analysis and bring the West motivational factors while China's to the empirical research so that makes the model independent variables also covers the typical motives of Western assumptions and motives of specific assumptions of China to explore the hidden motive behind the action in the accounting policy choice of listed companies.View of the non-efficiency and effectiveness corporation accounting policy choices, we could not avoid the usage of accounting policy choice for the earnings management, however, could do reasonable and legal guidance while given space to the accounting policy choice.With the development of market economy, the gradual improvement of modern enterprise system and more standardized of accounting system, we have reason to believe that the accounting choice behavior could be convergence with international. Under the premise of complying with accounting standards and without compromising the reliability and comparability of accounting information, the objectives will achievement which include the balance of interests and equitable distribution of wealth, and ultimately achieve Pareto efficiency.