Listed Companies In China To Create The Accounting Behavior Of Empirical Research

Creative accounting behavior is the common phenomenon in the world security market. As the enterprise administrator have complete information about the value of existing assets of the enterprise and the outside investors can only rely on the prospectus to get the disclosing information, the administrator often has clearer idea about the enterprises operation than the investors. This kind of information asymmetry between the investors and listed company offers space for creative accounting behavior in the listed company.As we know, ROE is the major index used recently in weighing the increase of shareholder wealth, and it is also the important financial indicator that investors use for appraising the profit ability of listed company and predicting the future investing remuneration for long. Compared with the profit, the cash flow is more difficult to be manipulated, and OCFPS is the best index to reflect the enterprise management state. The paper selects all public companies in Shenzhen and Shanghai security market from 1999 to 2003 as the whole sample and forms ten groups of indexes in all for empirical study. In empirical study, the descriptive statistics and K-S test are adopted and each group is divided into three typical parts for statistics analysis in order to examine the horizontal and concrete creative accounting behavior of each part. The empirical result for the whole sample shows that it is comparatively prevailing from 1999 to 2003 that the listed companies create false accounting through manipulating the ROE and OCFPS index. And comparatively speaking, the degree that the OCFPS index is manipulated is smaller, but the tendency of aggravating can be seen in recent years. The empirical result for the grouped sample shows that the ROE is manipulated the most in the interval from 0% to 10%, which indicates that the listed companies have the obvious creative accounting behavior in order to ration shares and avoid being ST and PT. On the other side, the manipulation against OCFPS index is mainly existed in those companies who have bigger net operating cash flow per share, which has revealed the severity of the related trade in the listed company.Finally, the conclusion summarizes the researching achievements of every part, and also points out the insufficiency in the research and the future direction of studying.