Theoretical And Empirical Study On Earnings Management In The Non-tradable Share Reform

The problem of Earnings management has always been an academic focus in accounting theoretical concern. In 2005, China began the reform of non-tradable shares, on the background of reform, the motives and behavior of earnings management became more prominent and intense. This study clear out the relationship between earnings management and the reform of non-tradable shares,have theoretical significance. In addition to providing some regulatory policy advice,this study have reality significance。This full-text is divided into five chapters. The first chapter analyze the purpose and meaning of the topic, clarify this research methods, and content. Chapter 2 comprise with the definition and features of earnings management, the motivation and the methods. Chapter 3 is the background to this article: the reform of non-tradable shares. From the unique phenomenon of our country, we study the concept and process of the reform of non-tradable shares. And according to the direction of this article, we study the compensation policy of the reform; make suppose that the listed company has strong earnings management motivation. Chapter 4 study from empirical perspective, in the help of the Jones model, demonstrates that different companies under its own purpose, has earnings management behavior generally. Chapter 5 give some relevant policy recommendations, and point out some deficiencies, describe the future of theoretical and empirical research perspectives.This article has adopted the theory and empirical analysis method for the study of earning management. Based on the study of earnings management and reform issues, we conducted the empirical analysis. This article select he listed data of companies which make the reform in 2005 and 2006, break the date into two samples, using the Jones models to perform a regression analysis on the existence of earnings management. Then, build a dummy variables model, to examine the results of earnings management. Make the conclusion that the listed companies have earnings management behavior, generally on the background of the reform, and believe that the listed companies, which reform on 2005, were not taken the action of earnings management to increase profits, comprise with the company, which reform in 2006, taken the action of earnings management to decrease profits.