A Study On Earnings Management Of Agricultural Listed Companies

Agricultural listed companies refers to the list companies with legal status, which engage in planing, breeding, or complex operating rely on planing and breeding, and implement independent accounting. Facing the dual pressures of natural risks and market risks, agriculture is a weak profession, agricultural listed companies are highly concerned by the government, there's a series of agriculture-favoring policies from the central to local government. Based on this, whether agricultural listed companies have general behavior of earnings management, becomes an issue of common concern. This article uses a study on earnings management of agricultural listed companies as a theme, aiming at providing a reference for potential investors and regulatory authorities, government to get a better understanding for earnings management of agricultural listed companies.This paper is based on earnings management theory, after reviewing domestic and foreign research results of earnings management, and analysing the basic situation of agricultural listed companies, we reasearch on earnings management of agricultural listed companies by using the data of agricultural listed companies for three years, from 2007 to 2009, utilizing the aggregate accruals method and profits constitute. The thesis is divided into six parts:As the introduction, the first chapter has briefly introduced the research background and significance, research method and the main content. The second chapter is the theory foundation of earnings management research, mainly introduces the definition and the theory foundation of earnings management with a review of relevant research. The third chapter analyzes the basic situation of agricultural listed companies, consists of the definition, basic situation and characteristics of agricultural listed companies. The fourth chapter is the empirical research part, including two aspects:the existence of earnings management and preferred means of earnings management. The fifth chapter further analyzes the motive and means of earnings management for agricultural listed companies on the basis of empirical conclusion. The sixth chapter concludes the research and presented several suggestions accordingly.The main conclusiosn of this thesis are as follows:Agricultural listed companies have general behavior of earnings management, and there are obvious preferred means of earnings management, that is they prefers to use debt restructuring, assets depreciation reserves, mergers and acquisitions and other nonoperating income and expense methods. The motiviton of earnings management for agricultural listed companies comprises internal and external motivation, internal motivation mainly refers to the weak characteristic of agriculture profession and financing difficulties; external motivation includes the inductivity of agriculture-favoring policies, the relevant legislation is not perfect and the accounting policies and regulations is imperfect. The means of earnings management for agricultural listed companies mainly include two aspects:First, use the choice of accounting policies and accounting confirmation; second, use the bussiness activities to achieve earnings management.According to the conclusions, we believe that to regulate earnings management of agricultural listed companies, we should further improve accounting standards and systems, strengthen auditing and supervision, perfect securities regulatory system.