The Research On The Impact For Earnings Management Of Financial Independent Directors Of Listed Companies

Corporate governance structure is a systematic concept, which includes several major components, namely, the Board of Directors, the Supervisory Board and the shareholding structure, the board of directors is the core of corporate governance, it is entrusted by the shareholders, manage the company's decision-making, at the same time it entrust the team manager with operational matters, therefore, the Board of Directors is in a position connecting in the company's power structure. In the modern enterprise general separation of ownership and management led to the increasing meeting of shareholders, boards of directors, senior management, board of supervisors, among the various functional departments of a series of principal - agent relationship, with the result that corporate governance has become a global problem, as the independent director system improve the corporate governance mechanism and the corresponding generated. The role of the Board of Directors is receiving increasing attention, but the construction of the independent director system in China is not very mature, its role has not fully played out.Earnings management of listed companies has been the accounting profession and financial focus. How to control earnings management behavior at home and abroad has aroused great concern to the academic community. Board of Directors is the core of corporate governance, earnings management is an important reason for the imbalance between corporate governance mechanisms, This article is to examine the financial independent directors on the role of earnings management control.This article which based on the standard research stands out the prominent real diagnosis research , so we can draw the following conclusions: a simple increase in the number of the board of directors, as well as the number of independent directors have no significance to control earnings management.only emphasized the increase in the number of independent directors representing the proportion of the board of directors can not well inhibit earnings management; we should pay more attention to the role of financial independent directors, through increased the numberof financial independence Directors in the Board of Directors to control the earnings management. This article is divided into the following six parts:The first part is introduction. This article describes the background and significance of topics and research ideas and methods, the development of a system of independent directors make it more and more depth to their research, independent directors of the refinement of the study, whether domestic or foreign research studies tend to a certain type of independent directors, the role of financial independent directors is receiving increasing attention.The second part is the home of independent directors on the Research. Summed up the domestic and foreign independent directors to conduct a study of the main aspects; focus on an analysis of independent directors, especially financial independent directors on the control of earnings management studies.The third part describes the meaning of independent directors, the development process, an analysis of the independence of independent directors; and then describe the definition of financial independent directors and its functions .The four part discusses the measure of earnings management; pointed out in this article is based on the expansion of Jones model belongs to lu jian qiao.The fifth part is the focus of this article, An Empirical Study of financial independent directors on the impact of earnings management. Come to the conclusion: the proportion of financial independent directors and negatively related to earnings management.The fifth part Pointed out a series of measures should be adopted so that the role of financial independent directors can fully play.