An Empirical Study Of Loss Listed Companies' Earning Management By Accounting For The Impairment Of Asset

In 2000,The Ministry of Finance issued Company Accounting System which added principles of accounting for the impairment of asset to 8 items,which provides more opportunities of earnings management to the managers.Meanwhile,loss listed companies face many special treatment so they have every reason to adjust accounting profits through earings management so as to avoid this disbennifit. This thesis studies the earnings management of loss listed companies empirically to find out whether loss listed companies manage accounting earnings through accounting for the impairment of assets. That's exactly what the investors and accounting standards setting sectors concern.This thesis chooses the datum of Chinese lost listed companies in 2001 and 2002 for empirical study. Firstly,it analyzes the basic definition and the background and then reviews the interrelated study-literatures.This thesis puts forward the model DAt=IAt-IAct and use it to test two hypothesises.In the end,we drew these conclusions:1.Accounting for the impairment of assets has become the main method of earning management in lost listed companies. 2.The study proves hypothesis 2 that there does exit some earning management activities in lost listed companies by accounting for impairment of assets in the first lost accounting year. 3.The study rejects hypothesis 1. Lost listed companies didn't manage earnings before lost accounting year. The probable reason is that those earning management activities appeared in 2 or 3 years before,or by other accounting method .