Empirical Study Of Earnings Management Of Listed Corporate Debt Restructuring Guidelines

Positive research of accounting choice is an important phase in the development of positive accounting research. One of the focuses in this phase is to explain why enterprises choose some accounting practice for benefit, that is the accounting policy is chosen in advance to reduce the possible costs between enterprise and its shareholders. Earnings management is an important field in positive accounting research. Positive research of Earnings management not only accelerates the perfect ness and development of generally accepted accounting principles, but also promotes the modern accounting theories and their research methods. Thus it plays an important role in positive accounting research. This paper tries to explain why enterprises choose debt restructuring accounting policy; analyses and tests whether enterprises have the intention to reduce conflict between enterprise and shareholders such as creditor, stockholders etc., or they carry out earnings management to maintain book value in order that they can escape the supervision of Stock Supervisory Bureau.Concretely, the emphases and main contributions of this paper are:Firstly, through comparing two different debt restructuring standards, on the basis of characteristic of public corporations' debt restructuring and the existed problems, this paper finds that the new debt restructuring rule still can be used to carry through earnings management by public corporations; through comparing the popular definitions in academia, hackles a clear theory frame; through distinguishing several definitions such as "real earnings management" and" accounting earnings management", "earnings management" and "earnings control", definites the earnings management behaviors with debt restructuring rule processed by public corporations.Secondly, through reviewing the agency theory, earnings management theory and economic result theory, this paper describes the cause and economic result of earnings management, and analyzes emphatically and detailedly the debt bargaining and managers' encouragement bargaining; On this foundation, this paper supplies theory base for the managers' using debt restructuring rules to carry out earnings management by analyzing the effect of accounting data on bargaining costs.Thirdly, by collecting the data of 165 public corporations that carry out the debt restructuring in 2001 as observation example, this article carries out the description statistics, hypothesis test, multi- regression analysis and sensitivity test to analyze thefacts that influence the benefits and losses of debt restructuring, especially the manufacturing corporations; in addition, this paper tests and abstractly analyzes the inducement of earnings management.Fourthly, This paper reveals the ways of earnings management and finds that despite new debt restructuring rule holds back public corporation's straight earnings management manner by adding restructuring income to Non-operating income, but affiliated enterprise' recessive earnings management methods such as assets exchange, debt exempted become more frequent. In addition to this, this paper also finds that some debt restructuring corporations make up with the loss of former years with capital reserve, which further proves the facts of debt restructuring corporation' earnings management.Finally, this paper explores the approach that how to control earnings management. From the respective such as debt restructuring rule's perfect, Company law, audit supervision and consummating inner administrative structure, this paper puts forward some ideas.