The Empirical Study On The Relationship Between Family Controls And Earnings Management In China's Family-Owned Listed Companies

Earnings management has become a universal problem of China's securities market. In order to achieve the request on the stock market, such as being listed, the issue of new shares, being loss, and in order to meet the provisions on company mergers and acquisitions, reorganization, etc., in order to satisfy certain internal or managers' Private interests, listed companies usually modify key Indicators information by means of earnings management and faking the accounting information. Private, family listed companies face the same pressure with other listed companies, thus have the same motivation for earnings management. The current domestic researches are mostly focused on the overall of listed companies or loss groups, while not specifically on some certain groups. In view of the nature of a special property, stock characteristics of China's private and family-hold listed companies and the resulting special governance problems and earnings management motives, to study the characteristics of shares and Controlling Right of family-hold listed companies and the influence on earnings management has important theoretical value and practical significance no matter on market supervision and on decision-making.The article concentrates on the feature of the family listed company's share structure, especially on the Share centralization and the way of stock control of the family listed companies, what's more, compares it with the feature of State-controlled listed companies' and public-controlled listed companies'. And then, the article makes a particular expatiation on the feature precondition and cause of the family listed company earnings management and makes the research on the relationship between the family's control right and the earnings management in the family listed companies through the demonstration methods. Finally, the article draws the conclusion and proposes the countermeasures and policy suggestions about the earnings management of family listed companies.Compared to the limitations that past researches only stay in the governance level and performance, this article will further to the financial level. And the innovation is the study on the relation between the controlling right and the earnings management and the feature of the earnings management of family listed companies.