Research On Accounting Errors' Information Noises Of Listed Companies

This article takes the accounting errors as one of the profit-manipulate. Based on the theories of economic consequence, efficient market, function lock-up hypothesis, non-domino effect hypothesis and mechanism hypothesis, the dissertation analyzes the reason and motivation of the accounting errors, beginning with the root and the objective condition of the profit-manipulate.Afterwards, Combined with characteristics of income smoothing, huge amount of write off and earnings management induced by policy-based factors which were carried through by accounting errors, the article investigates accounting errors'information noises of listed companies with taking the influence of non recurring items into account based on data during 1998 to 2003 from listed companies in which huge accounting errors took place. The findings are as follows: (1) There exists apparent information noise in the behaviors of huge amount write off and earnings management induced by policy-based factors which are carried through in accounting errors. (2) Compared with the companies without any accounting errors taking place, the companies which have accounting errors make more noise on accounting earnings. (3) Accounting errors surplus effects the stock price, the mechanicalness hypothesis is validated. Finally, the dissertation puts forward some suggestions from the angles of how to prevent the listed company from making accounting errors to conduct earnings management, strengthening the supervision function of securities business, perfecting the government's supervision of information and corporate governance structure.