Corporate Governance And Earnings Management Research

aaaaaThe securities market of China started late compared with westerncountries, so those rules and laws are not complete enough to prevent theillegal activities in stock market, especially the problems of earningsmanagement. In accounting academy of foreign countries, earningsmanagement has been a research subject for nearly 20 years. Subsequently inChina, the research work of earnings management is also in process, which isvery hot today. Because of the in-depth study of earnings management, it isnot only good for accounting theory development, accounting practice reformand accounting principle perfection, but also has great influence on theaccounting activities. This dissertation considers that under the moderncompany system, agency problem and information asymmetry of corporategovernance structure are the core reasons of earnings management. Thisdissertation mainly uses the normative study;first we introduce some theoriesabout earnings management and corporate governance. Then we analyze theinter-actions between corporate governance and earnings management.Afterward, we will learn those problems about earnings management andcorporate governance of listed companies of China in nowadays, we willpoint out that wrongly used earnings management give investors the wronginformation and it will cause damages to investors' benefits and make thecapital market disordered. But at the same time, corporate governancestructure provides an effective restriction mechanism, which give regulationsto the operating activities and disclosure activities both from internal andexternal agents. At last, this dissertation studies the way of reasonableregulation of earnings management from the position of corporate governance,make sure that the influence on accounting information is minimized andguarantee the quality of accounting information is publicly accepted.