Research On Earnings Management Of Listed Companies Under Special Treatment

Earnings management has a long history and it has become an important issue inthe research of modern accounting theory. It has taken more than twenty years tostudy earnings management in abroad, while our country began to study it lately. Withthe development of stock market and the surging of listed companies in our country,earnings management turned up, which has become one of the new subjects ofaccounting theory and practice in our country. Earnings management has positive andnegative effect on our economy. However, it has been abused to such an extent inlisted companies that its negative effect exceeds its positive effect considerably.Hence earnings management has become one of the most important causes foraccounting information distortion. In order to solve the problem of accountinginformation distortion and promote the development of the stock market, it isnecessary to probe into the issue of earning management in listed companies. Listedcompanies under special treatment are special product of stock market in our country.So, the research on their behavior of earnings management is more representative andvaluable. Based on this point, the thesis chooses listed companies under specialtreatment as research object, makes the study on the related issues about their earningsmanagement.First, the thesis explains the recent research achievements of earningsmanagement, then, discusses the theory summary of earnings management and theintentions, methods, identification of the behavior of listed companies under specialtreatment. After that, the thesis picks up companies which had been special treated inthe year 2006 as the basic sample. Based on the data of these companies, we make theregression analysis by SPSS software. The empirical analysis draws the followingconclusion: when listed companies have been special treated, they would chooseearnings management, whatever they can relieve this special treatment in the next yearor not. And there is preference in their behavior of earnings management. Finally,based on previous theoretical and empirical analysis, the thesis raises the essential andbeneficial control measures for earnings management of listed companies underspecial treatment.