Research On The Influence Of The Quitting Regulations On The Earning Management About Listed Company In China

Earnings management of the listed company has already become a stubborn illness on the stock market. The basic agent of the massive earnings management and even the finance default on our stock market lays in meeting the correlation supervising and managing requirements to realization equity financing goal. From this standpoint, some unreasonable supervisory laws and regulations in the stock market is one of the reasons, which lead to the earning management of the listed company. The quitting regulations of our securities market start to be later. The regulations has unceasingly developed from the regulation of ST(Special Treatment) of the public listed companies putted into practice since 1998, and some problems were found in process of government supervision. For example present quitting regulations directly relates the qualifications to the profit target, some company which should quit the stock market keep their qualifications through operated the profit target.Under this background, with some basic knowledge of earnings management this paper using the public material of some listed company in China starts an investigation on the influence of the quitting regulations, which appears one after another in China's security market. This paper focuses on the influence of the evaluative quitting regulations to earnings management of some listed company in China. The thesis is made up of the following four parts:The partⅠ: Introduced the earnings management elementary theory. Firstly comment on the representative viewpoint about the earnings management definition in domestic and foreign academic circles, obtains our definition about earnings management. Then it analyzed the characteristic and the inevitability of the earnings management, elaborated the contract theory and the no-asymmetrical information theory and its influence to earnings management theory.The partⅡ: Introduced the relations of quitting regulations and the earnings management in our country. Firstly compared our quitting regulations with the promulgates in the mature stock market, opened out the insufficiency of our quitting regulations, studied the influence which the quitting regulation on the listed company's earnings management with the standard analysis method, mainly discussed the influence of quitting rules on the listed companies' benefit correlation in our country. By gathering the data of the listed companies we analysis the situation of the listed companies after promulgate the quitting rules, as well the main measure of the listed companies which has been special threatened abolish specially processes. Obtained in order to reply the quitting regulations the listed companies have the earnings administrative action. In this foundation we proposed the preliminary supposition of the influence that the quitting regulations have on the earnings management action of the listed companies.The partⅢ: Analyzed the influence of the quitting regulations on the earnings management of the listed company by the real diagnosis. This part is the main part which manifests the article innovates. According to the second part of research, we divide the analysis into three stages as the evolution process of the quitting regulations. The real diagnosis research divides into two parts to carry on, the first part selects 102 ST Corporation to take the sample from 1998 to 2002, analyzes the influence of quitting regulations which promulgated in 1998 and 2001 on the company earnings administrative action; The second part selects 160 loss companies from 2002 to 2005 to take the sample, analyzes the influence of the additional regulations for the quitting regulations which promulgated in 2003 on the earnings management action of the listed company.The partⅣ. is conclusion of the paper, give the conclusion of the analysis and in the above findings foundation proposed the suggestion to consummates the quitting regulations of our country.Comparing this article with predecessor's research have the following innovation and characteristic:1st, this article belongs to the research of earnings management motive and researches the change of quitting regulations' influence on the earnings management of the listed company. The predecessor concentrates regarding the earnings management motive research to IPO Corporation and increases the share matching company or loses company. The research in the influence of the quitting regulations on the earnings management of the listed company is very little and is only restricted in the standard analysis.2nd, in this article we divide the analysis into three stages as the evolution process of the quitting regulations, unifies the evolution of various stages real diagnosis analysis the change of the earnings management action of the listed company, and discuss the influence of the quitting regulations on the earnings management of the listed company.3rd, research technique synthesis utilization: This article not only used the standard analysis method but also to unify the description analysis, should-countingprofit analysis method, DeAngelo model, the T examination, Mann-Whitney U examination and so on, analyzing the influence of the quitting regulations on the earnings management of the listed company.