The Research And Case Study Of The Financial Crisis's Impact On Earning Management In Chinese Manufacturing Listed Companies

It is worth discussing whether the financial crisis influences earnings management in Chinese enterprises, and the discussion will have certain guiding significance for the future. From the perspective of external economic environment, this thesis aims to deepen the understanding of earnings management in enterprises, provide beneficial suggestions for management model of manufacturing industry, formulation of management compensation contract in listed companies, and design of management incentive mechanism, in order to improve the capacity of Chinese manufacturing industry to resist fluctuations in economy, and constrain earnings management behaviors of listed companies in China.This thesis takes China's listed companies in manufacturing industry as the research objects, analyzes the characteristics of manufacturing industry in China and the influence of financial crisis to it, and uses Modified Jones Model to further study earnings management behaviors in China's manufacturing listed companies before and after the financial crisis. The test result shows that during the financial crisis, the listed companies in manufacturing industry have the motive of smoothening business performance. Finally, A Co., LTD, a clothing manufacturer, is taken as a special case. The author analyzes its accounting performances before and after the financial crisis to effectively verify the conclusion of this thesis.Based on the data of listed manufacturing companies in China's Shanghai A share Securities Exchange from 2006 to 2010, this thesis examines the relationships between financial crisis and earnings management. The results show that the situation of earnings management after the financial crisis is different from the situation before it, and the influences of controls part on the overall accrued profits are different. Through statistical analysis, we find that before financial crisis, the overall data suggest that the enterprises tend to carry out negative earnings management, while after the financial crisis, earnings management is more common, and the overall data indicate that they prefer positive earnings management.