Study On The Earnings Management Of The Listed Companies In China

Earnings management is one of accounting choice behaviors which aim to obtain value-maximized of private and companies in the range of accounting principles. The companies can change accounting policy and accounting estimate. Because of flexibility and uncertain, accounting change provide a wide space. Based on the truth of securities market, my thesis researches earnings management based on accounting change behaviors of listed companies from the point of theoretic and empirical analysis. 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, and puts forward some possible innovations.Chapter two briefly reviews the concept of earnings management and accounting change. The part of earnings management: firstly, it introduces the concepts of earnings management; secondly, it analyses the basic characteristics, including subject, means and aims; lastly, it analyses the effects of earnings management. In the part of accounting change: it introduces the concepts and accounting method of accounting policy and accounting estimate.Chapter three introduces the theoretic sources earnings management. Firstly, it analyses theoretic sources of earnings management: contract theory and information economics. The contract theory explains the motives of earnings management. The information economics explains the possibilities of earnings management; secondly, it analyses the relationship of earnings management and corporate governance structure. It also analyses the influence of corporate governance structure on earnings management; lastly, it analyses the relationship of earnings management and accounting supervision from the point of games theory: in the fact, earnings management is one of the game behavior of the enterprise manager. The accounting principles establishing is the outcome of the game between enterprise and supervising department.Chapter four introduces the present situation of earnings management in China. Firstly, it analyses the earnings management motives of listed companies; secondly, it analyses the reasons that accounting change provide the space for earnings management; lastly, it introduce the means of accounting change.