The Empirical Study On Sme Board Characteristics And Earnings Management

Currently,Earnings management is one of the issues on the accounting profession.As the company's management of manipulate corporate accounting earnings that making agreater degree of distortion information disclosure of listed companies,earningsmanagement is common in SMEs in China. This text front features for SMEs, withempirical researching methods, focusing on board characteristics on the impact ofearnings management,analyzing the characteristics of the board of directors and therelationship between the degrees of earnings management.This paper analyzes the concept of board and board characteristics and compositionof the board of directors.,then summarizing the implication of earnings manangment.Byanalyzing the basic characteristics of earnings management,this paper researches the basiccharacteristics of earnings management strengths and weakness, the means of earningsmanagement and its measurement model as well as the basic theory.Secondly, the paper analyzes the board of directors of China's SMEs listed companiescurrent situation and status of earnings management.Thirdly, this paper choses sample which is the China's SMEs listed companies inShenzhen Stock Exchange in2010.By By collecting features of the board of directorswhich include independent features, behavioral features, and professional features,incentive features and they can affects the accruals.Studying findings:board size,proportion of independent directors and earningsmanagement does not have a degree of correlation; chairman and general manager of twopart-time staff, board meetings and the Audit Committee is set up with the level ofearnings management has a negative correlation; Board of Directors holding number, theproportion of directors do not receive remuneration and the extent of earningsmanagement has a positive correlation.Finally, this paper presents the view which can improve corporate governance,hoping to help improve corporate governance of China's SMEs and avoiding or controlingthe behavior of earnings management of listed companies, the SME board can healthygrowth and have a smooth transition to GEM.