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Empirical Research On Earnings Management In Chinese Listed Companies

Posted on:2006-11-09Degree:MasterType:Thesis
Country:ChinaCandidate:K HeFull Text:PDF
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This thesis begins with the concept, motivations and means of earning management of Chinese listed companies. According to the ROE frequency distribution of all the listed companies in 2003, the thesis states that when the ROE is 0 or 6%, the companies have strong motivation of earnings management. And then, by taking 31 loss listed companies in Shenzhen Stock Exchange as sample and some listed companies in the same industry and with the same scale's assets as controlled samples, adopting some statistics methods, the penman studies and deduces the earnings management of the loss listed companies. The conclusion shows that the loss-making companies conduct the remarkable earnings management of deliberately reducing surplus during the first loss year and intentionally increasing profits during the first payoff year. It shows that the listing companies at a loss generally manage their earnings by deducing or adding the revenue in order to avoid the penalty by CSRC. There are 50% loss listed companies become profitable by primary service. Others become profitable by earnings management. Certainly, earnings management can make financial ratios unusual, Such ratios as accounts receivable rate, accounts receivable turnover rate, debt ratio, quick ratio, sales tax ratio and period cost ratio can be the siginal of earnings management. At the end of the article writor gives some advice of how to treat with the earning management.
Keywords/Search Tags:Earning management, Discretionary accruals, Below the line, Financial ratio
PDF Full Text Request
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