Listed Companies In China, Earnings Management Empirical Research

With the development of capital market and accounting market of China, The problem of earning management of listed companies has been caused to concern of universal at the present time.Earning management is the interference behaviour to the finance report of the enterprise for personal benefits, In fact, It is the manipulation to the accounting information of the listed companies. It would lead to the redistribution of wealth of the covenanters, So much as cause the conflict of interests of the covenanters, The undue earning management can easily turn into malpractice, cheating, deal in secret during the developing of capital of China, such as "Qiongmingyuan", "zhengbaiwen", "yinguangxia", "maikete" have caused universal concern of all social. Whether the listed company has earning management problem, not only has the direct effect on the validity of the function of distribution resource of securities business, but also reflect the rationalization of management policies of the government. This can also decide whether the policy can ensure the healthiness, stabilization, and continuance of development of our country's securities business. The problem isn't purely an economy problem, even a serious social political problem. Accordingly, to study the earning management problem of listed company in our country is fully necessary and urgent.This thesis researches the ROE of listed company of A Group from 1998 to 2000 through positive analysis. The thesis analyzes the sample distribution through quantificational and statistical way and hypothesis tests. The thesis discusses the mechanism that leads to the earning management of listed companies and the way through which the earning management come true. The thesis also proposes some suggestion about building up the securities business in our country.The conclusions that can be drawn in this thesis are:1) The heavy earning management of the listed company has taken place from 1998 to 2000, And it has obviously inflect of policies.2) The principal factors result in earning management include: clientage-agent model, debt covenant, political cost covenant, asymmetrical information, accounting policy, faultiness of accounting standard and accounting system.3) The ways by which the earning management can be brought about: Affiliated dealings, assets transfer and replacement, applying accounting policy with light hand, assets recombination, support by local government etc.4) Suggestions'. Perfect the accounting standard and accounting system, disclose affiliated dealings, devise the stipulation on pause of coming into the market, ameliorate controlling parameter about share distribution, perfect supervision and management policy on securities business.