Emperical Research On Earnings Management Under The Earnings Forecast Motive Of Listed Companies

Research related to the accounting information disclosed the earnings forecast is an integral part of the problem. Information received from the parties concerned, the judgment and the quality of information investors are closely related to income, the earnings forecast is available to analyze the ration of investors. Information released from the side, the earnings forecast reflects the company's management to weigh the costs of information disclosure and incomes, which in turn have a direct impact on the information disclosure policy. In the process of conducting the earnings forecast for the market to consider the validity and the effect of policies, showing the role of the supervision system. Because of the contractual nature of the profit forecast to the IPO companies, management persons may be motivated to take advantage of its strong form with the securities supervision departments and between the asymmetric information and incomplete contracts, using earnings management through internal manipulation of the situation to avoid punishment. If the earnings management happened, it will not only make confusion to the stock market but also harmful to the investors. Therefore, it is essential to research earnings management of the listed company's earnings forecast, for its prevention and control, thereby promoting the standardization and improvement of China's securities market.This paper is mainly study on three issues about the earnings management under earnings forecast motive of listed company: First, though the year profit forecast accuracy descriptive statistical analysis of IPO companies listed on China's the overall level, the conclusion is that the profit forecast accuracy is higher. China's capital market is still not perfect enough in the case of a high level of profit forecasts can not help but harbor doubts about whether there was a problem behind accurate? Thus, the next part is to collect the 328 IPO companies that had disclosed the earnings forecast data, on the empirical analysis of samples found that the profitability of listed companies in China overestimated escape punishment and in order to attract investors to manage the surplus does exist for such purposes. And the earnings management use discretionary accruals earnings management degree is obviously as Western classical model. Finally, we found that the impact of earnings management under the earnings forecast motive has a wide range of factors, changes in the system which is a very important factor. Though collect the before and after existence of a voluntary policy that the IPO company own to earnings management phenomenon, take empirical research to the disclosure system of earnings forecasts, prove that the execution of the voluntary policies is available to control the earnings management.Based on earnings management under the earnings forecast motive research, which is not only contribute to the development of China's accounting standards but also contribute to the improvement of corporate governance structure, organizational behavior and control series of theories, including to resolve the market supervision problems.