A Positive Research On Earnings Management And Corporate Governance

The securities market of China started late compared with westerncountries, so those rules and laws are not complete enough to prevent the illegal activities in stock market, especially the problems of earnings management. In accounting academy of foreign countries, earnings management has been a research subject for nearly 20 years. With the development of securities market in our country the research of the earnings management is developing. Earning management is not only accounting behavior,but management behavior,so we should control earning management from its. Dued to the natural relationship between the information of accounting earning and corporate governance structure ,the ample and perfect accounting informatiom system plays a significant role in reducing the asymmetry of information and the controlling of reverse option as well as that of moral risk, which leads to a situation that corporate governance works efficiently and social resource is distributed properly. Moreover, corporate governance structure is a kind of regulation and arrangement,which manages and controls the running of organizations. Weather it is sound or not has a direct impact on the development of listed companies and capital market. At the same time ,it is perfect extent influences the quality of listed company accounting earnings information. what a pity that china scholars have not research earnings management together with corporate governance strcure until recent years. And what makes worse is that the majorities research applying the method of theoretical analysis with few achievement of positive research .So,the paper aims to does systematic theoretical analysis and positive research on the relationship between corporate governance structure and earings management.First of all, the paper explicates respectively the conceptions of corporate conveyance structure and earnings management as well as some relative theories. Then based on the framework of the external and internal governance structure and earnings management of listed companies. Doing positive research on earnings management can not be independent from models of earnings management. The effect of madel will influence the result of research .Based on analyze some model of earnings management,the paper abstains,based on the samples picked from several listed companies whose audit reports had been pronounce to be nonstandard in 2004,from the characteristic of board ,positive analysis toward the relationship of governance structure and earnings management was conducted applying various methods, such as descriptive statistic,logistic regression analysis.Last,some advices are gived to improve corporate governance structure of listed companies with the hope to provide some effective ideas to constraint the action of accounting behavior in listed companies.