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China A-share Listed Companies Profit Manipulation Of The Problem

Posted on:2011-09-19Degree:MasterType:Thesis
Country:ChinaCandidate:J XinFull Text:PDF
GTID:2199360305997708Subject:Finance
Abstract/Summary:PDF Full Text Request
In recent years, earning manipulation by the listed companies have become the focus of the press, academia and government regulatory bodies. Earnings manipulation destroys trust between investors and companies and has a negative influence on the development of securities market. Therefore,it is urgent to solve the problem of earnings manipulation. It is also an important task for us to validate and indentify the earnings manipulation behavior scientifically and reasonably. Only then can we combine the theory of corporate finance with listed companies well and improve the internal control system of the company as well as relevant laws and regulations. Consequently we can advance the healthy development of listed companies and decrease the probability of earnings manipulation.In order to effectively identify earnings manipulation behaviors, this thesis first starts with the definition of earnings manipulation which considers that earnings manipulation is an management team's intentional distortion of the financial reports of the company in order to gain personal or group interest by breaching the existing public accounting principle. Then the thesis further discusses the motivation and methods of earnings manipulation of listed companies. Moreover, the author introduces several models which identify earnings manipulation and carries out the comparison analysis of the pros and cons of these models.Based on above analysis, the author conducts experiential tests on the earnings manipulation by using the adjusted Jones model and compares the result with existing research findings. In addition, the author performs experiential test on factors that affect earnings manipulation and finds out the relationship of these factors with earnings manipulation. Finally, the author provides some suggestions on how to avoid earnings manipulation in the Chinese capital market and Chinese listed companies.
Keywords/Search Tags:Earnings manipulation, Jones model, Chinese listed companies
PDF Full Text Request
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