The Research On Earnings Management Under New Accounting Principles

Earnings management means the control of the earnings under the accounting principles and the company law by the managers of the company, it also inclodes using the mergers and acquisitions and the other trades to control the earnings.The damage of Earnings management on the capital market is becoming more and more sericious.Local scholars have made relatively fufficient statistical research on the existence of corporate earnings management and problem caused by the extent of such practice,but lack in-depth discussions on the function of accounting principles in earnings management activities.This paper examines earnings management mainly from the perspective of accounting principles to give pieces of advices to people to establish such principles a basis for drawing up policies for complete accounting principles.At the same time,doing the reasearch of the earnings management can help the users of the fincial statements to learn about the quality of the earnings and the value of the company,then they can make the right decision rather than having a loss by just believing the fincial numbers and this can do a favor to the good use of the social sources.The paper analyses the relationship between the earning management and the accounting principles,the changes of the new principles,and the methods of the earnings management.Then I do empirical research choos 1417 companies listed in Shanghai and Shenzhen share market,and then come to the conclusions as follows, Firstly,the degree of earnings management is larger under the new accouting principl. Secondly, the impairmet lose is also used by the manager under the new principle, Thirdly, capitalization of the debts interest is also used by the manager. Forthly, the degree of earnings management is not quite related to the changes of fair value.At last, the paper analyzes how to realize the methods of earnings management,including paying attention to impairment loses and debts interest,related party transactions,and non-recurring gains and losses,etc.And then give some advice,such as,training some financial person of high quality,asking the securities regulatory authorities not pay much attention on the financial state data,and using the accounting principle to reduce the degree of the earnings management.