Earnings Management Research

Earnings management is the behavior of managers to maximize their private benefits or the market value of the company through the choice of accounting policies or other methods. At present earnings management of listed companies has become the most serious problem that affects China's social and economic development.This paper is based on some basic knowledge of earnings management, analyses the reasons that earnings management exists and presents the role of earnings management both in the market and economic today. Then it states the motives that lead to earnings management, the strategies and means of earnings management. On the level of above actions, the paper provides the measures to strict earnings management of listed companies. The thesis is made up of the following three parts:The first part gives the significance of this thesis and reviews the achievements of the accounting scholars in the past, then introduces the concept of earnings management and the reason it exists, and finally analyses the advantages and disadvantages of earnings management.The second part first introduces the motives of earnings management, analyses the motives in China with the circumstances of China, then simply states the strategies and lists different ways to manage earnings.The third part puts forward some measures and suggestions, based on the results of the above study, for earnings management of listed companies in China: the detailed analyses aimed at perfecting corporate governance structure, accounting regulations, the supervision of CPAs, the supervisory laws and regulations of China's securities market.