An Empirical Research On Earning Management About Power Listed Companies' Annual Financial Report

There are wide earning managements in China's listed companies has been proved by many studies. However, when we talked about power listed companies we don't know whether there are earning managements lie in or we don't know how the managers do the earning managements; and also the former studies used is the cross-sectional data of annual financial reports,thus these studies can not affect how the earning managements change within seasons of the year. That's study of mine is just avoid these drawbacks , there are four years' data in my studies(from 2002 to 2005),in every year using quarterly financial reports to do my test. The model I used is Jones Model. After the test, we can get these efforts: The first, there is much evidences to prove that power listed companies have obviously earning managements; The second , the power listed companies have minus earning managements that is cutting down the earnings; The third we can proved from our test is after the auditing, the managers are inclined to do different adjusts against the yearly financial reports; The fourth we can get out is that the last aim of the earning managements between quarterly reports is to smooth every yearly earning.