Research On The Motivations Of Manufacturing Listed Companies' Assets Depreciation In China

Aiming at more conservative reflection of the business values, in 2001, Ministry of Finance enacted assets depreciation in the new "Accounting System for Business Enterprises", providing the first set of systematical rules for assets depreciation accounting. However, according to the annual reports of the listed company in recent years, the policy of asset depreciation has become a tool of earning management, Then, the assets depreciation become "edge toll" of earning management really? Which economic motivations is the existence? This is the focus of the study.The paper includes theory and empirical research, especially highlighting the empirical research on the motivation of assets depreciation. In the theory research, we analyze the theoretical foundation, system background of assets depreciation and the methods of earning management. In the empirical research, we propose research hypotheses firstly and choose shanghai and Shenzhen A share manufacture market in the years of 2003,2004 and 2005 and described statistics and regression analysis using statistical analysis software as SPSS etc. Later we verify the result of study through contrasting two type companies. At last, the paper provided some suggestions and related regulation, and establishing including a rational appraisal system.Some conclusions can be drawn as follows: the adoption of the eight items of provision policy has moved the book value of assets closer to their market values, and it improves the utility of financial data; The motive of manufacture listed companies selecting asset depreciation policies is probably profit smoothness and is based on supervision policy of bond market; With new norms advent or former norms alteration, the accountancy quality can not improve immediately. We should investigate continuously the factors influencing on the execution of asset impairment policies.