China Loss Of Earnings Management

The qualification of public offering is always a rare resource in China, it is very important to obtain and maintain the resource for firms. When t he profit goal cannot be reached by normal transactions, earnings managemen t became a good way to avoid losses. Earnings management has been a common phenomena that shouldn' t been ignored in capital market in China, so it is necessary to research the statement of earnings management in China and com e up with suggestions of recognition and governance.Since 2001, A subsequence of new regulations like the Accounting Standards for Business Enterprise have been issued and implemented, which give thelisted companies more pressure to avoid losses and motive the listed companies with losses to manage their earnings. But on the other hand, these newregulations limited the behavior of earnings management in many respects. Then if earnings management of listed companies with losses will have any n ew features? Based on other persons' previous researches, I will study this question to prove that whether earnings management still existed in listed companies with losses, if it dose, then which means they used. And I discu ssed the incentives and causes of earnings management to provide the theore tical accordance for formulating policy of security supervision.After introduced the theories of earnings management, I studied the mean s of earnings management of listed companies with losses in China with empi rical and normative methods, and discussed the reason why earnings manageme nt still existed, then I suggested some policies to govern it.