Research Of China Listed Company's Earning Management

Based on data of listed companies of manufacturing industry in Shanghai and Shenzhen A Share from 2003 to 2008,the thesis made statistics analysis and empirical research on earning management conducted by listed companies.Firstly,the thesis used frequency distribution method to identify the existence and prevalence of earning management.After giving bar charts of listed companies' ROE, the thesis madeχ2test and K-S test.The result refused the hypothesis that the ROE obeyed just distribution.So it approved that listed companies conducted earnings management.And then the thesis chose modified cross-section Jones Model to discriminate if listed companies that had badly deficit and small profits used discretionary accruals to conduct earnings management.The result proved that these three type companies conducted earnings management.Design Earning Management Model based on China Corperation Accounting System and perform regression analysis. It is verified from the results that unusall gain and loss items is mainly made use for earning management.Besides,new Accounting System issued in 2006 have both negative and positive impact on the behavior of Earning Management of listed companies in China.