Study On Earnings Management Of Domestic Listed Corporations

Earnings is important contents of listed companies'financial information,not only is earnings information affect whether the stock companies could be listed and share allotment,but the important factors of stock price.Earnings management has been more and more a hot topic with the development of our country's capital market,many listed companies use the imperfection of policies and regulations carrying on profit adjustment,this also have been the method of listed company and one of the cause of distortion of accounting information.Therefore,study on listed companies' earnings management possesses important theory and real meanings.This thesis begin with the meaning of earnings management,concludes the types of earnings management,investigates the economical source of earnings management. using economics theory such as contract theory,information economics and inner controlling,and then analyze the environment,motivation and methods of domestic listed companies to carry on earnings management combined with realistic situation of capital market in china.Also this thesis makes an empirical analysis on the relationship between extraction of eight terms of depreciation reserves in 2006 and earnings management of 460 domestic listed companies in Shenzhen city,verifies the hypothesis that deficit companies draw more depreciation preparation in deficit years and the companies which turn loss into gain draw less depreciation preparation for turning loss.In the end,investigates three inner factors which influence the earnings management of listed companies and put forward some measures to prevent earnings management.Second,explores factors that influencing the extent of earnings management.Such factors include the corporations'interior factors(ownership structure,the condition of management and the ratio of assets to liabilities)and exterior supervision policies.This paper uses section modified Jones modelto measure the extent of earnings management,then.contacts the results with above factors to study their relationship.The author pays more attention on the relation between earnings management and the concentration ratio of shares(the proportion of the largest shareholder and HerfindahlIndex H5),because this factor can reflect the condition of controlling shareholder in an enterprise.The study indicates that there is a"U"relationship between the proportion of the largest shareholder(or Herfindahl Index H5)and the extent of earnings management.