New Accounting Standards Differences, Different Industry Earnings Management

The study of earnings management began in the1980s, but so far, earnings management is still one of the hot researches in the area of accounting and economic academic. With the rapid development and increasingly mature of China's market economy, the issue of earnings management is also increasingly obvious, especially in listed companies.To a certain extent, earnings management can help the companies pass a temporary financial crisis, keep price stability and enhance the confidence of investors, but the excessive earnings management will cause the distortion of accounting information,besides that, it is not good for the allocation of social resourcesd and the development of their long-term development. The tools of earnings management used by enterprises is various, such as the use of accounting estimates and accounting changes, provision for a variety of impairment, changes in inventory valuation methods as accounting methods, the use of assets reorganization, related-party transactions and other non-accounting methods.Accounting standards is not a natural cause of earnings management, but it is inherently a tool of earnings management. Accounting Standards and the earnings management evolve and develop with each other in the long-lasting game. Accounting Standards limits the behaviors of earnings management, but at the same time, also offers the space for it. Using the limitations of accounting standards, earnings management also contributs to the improvement of accounting standards. In order to meet the current needs of economic development combined with business cases, the new accounting standards formally promulgated on February 15,2006 and provided for implement first in the context of listed companies since January 1,2007.However the new accounting standards impact on earnings management of the companies is also one of the hot issues studied in domestic accounting academics.Many of the studies about the new accounting standards'impact on earnings management are inferred from theory, but there are some scholars that use empirical methods to prove it. This paper adopts the empirical method to study new accounting standards'impact on earnings management that leaves in the different sectors. In view of the different impact of accounting standards'changes on, different sectors, this paper presents an assumption about the differences among the impacts of new accounting standards on different sectors'earnings management, and uses cross-section modified Jones model to prove it, then makes some relevant conclusions. Firstly, this article introduces the research background and the meaning of the text. And then,it discusses the relevant theories and the studies status at home and abroad of earnings management.Followed that, it descripts the relationship between earnings management and the new accounting standards and theoretical analysis of the impact of the accounting standards on earnings management. After that, it proves the hypothesis of this study. Finally, it makes the appropriate conclusions and puts forward countermeasures and suggestions.Under the new accounting environment, it is hoped that this research can improve the awareness of users on accounting information of different sectors'listed companies, improve their vigilance to different sectors'earnings management in order to help them make the right decisions. Due to the limitations of selection on the sectors, the conclusions of this research is also not comprehensive enough.