China's Listed Companies Ownership Structure And Earnings Management Research

Earnings management is not only accounting behavior, but also management behavior. Studies in domestic are all focus on earnings management whether exist and when exist, while study less on the impact of factors of earnings management. In view of this situation, the purpose of this study is to explore ownership structure of earnings management constraints.This paper analyzes that the ownership structure affect earnings management in two aspects, ownership concentration degree and ownership structure. The most ownership structure of Chinese listed companies is dominant shareholder, combined with the lack of motivation and the lack of effective control over the market. All these making "internal control" problem to be more prominent in our listed companies, which caused the earnings management. Thus, the rationality of the ownership structure of listed companies has a significant impact on earnings management.The paper adopts academic and experimental ways。Firstly, the paper has a review about the related literature and got some inference:the association between earnings management and ownership concentration degree follows positive relation; a positive relation is founded between earnings management and State-owned shares of ownership; the relation between corporate shares ownership and earnings management is negative, which is the same as the relation between public stock ownership and earnings management. No evidence show the ownership of manager can affect earnings management.This paper adopts A-share of Chinese stocks market including Shanghai and Shenzhen market during 2006-2008 as a research sample. After combination the theory analysis and experienced test on the topic that the relation between earnings management and ownership structure, the thesis draws some conclusion:the association between earnings management and ownership concentration degree follows positive relation; a positive relation is founded between earnings management and State-owned shares of ownership; the corporate shares ownership and public stock ownership can restrain the production of earnings management; No evidence show the ownership of manager can affect earnings management. In the end, the paper proposed some targeted recommendations...