Study On Earnings Management Of The Real Estate Industry Listed Company In China

In recent years, with the development of the securities market, the accounting environment of listed companies in China has become more and more complicated the research of earnings management began to appear, and gradually become the hot spot of accounting theory study. Earnings management is evolved from the creative accounting of 19th century, from initial profits smoothing, to the subsequent engaged in secret preparation, and gradually develop to the present earnings management, which called'the game of market participants', and it has accepted more and more attention from the accounting academic field.Throughout the current study, it is easy to see of the existing research results is mainly focused on the earnings management which listed company is deficit or based on allotment, and there are few earnings management research which according to profitable company singly, but this does not mean that profitable company would not exist earnings management, instead, profitable company will also meet many problems, such as too large profit fluctuations would reduce investor's confidence, or too strong profit ability would cause unnecessary competition, and so on, then a lot of listed company may choose through the earnings management behavior to reduce the corresponding political cost, etc.At the same time, China's urbanization, city internationalization has become the inevitable trend of China's future development, as the backbone of promote China's urbanization process, the real estate industry has become the industry power which has most leading and drawing strength, so such a high-risk and high-return industry, is more and more favored by investors in recent years, and the earnings information for stakeholders is particularly important, sensitive.In addition, the real estate industry has some different system from general industry for instance advance sales system, which leading to the accounting treatment is significant different from general industry. Based on this background, this paper choose the real estate industry as a representative of profitable company, research. the motivation, means, influence of earnings management, and give some suggestions of avoiding earnings management of the real estate industry. This paper selects listed companies of the real estate industry in China as a research object, collects the data from the annual report of 2007-2010 years, analyzes the changes of financial index by horizontal and vertical respectively, summarizes the characteristics and rules of the industry, focuses on the analysis of earnings management behavior motive, method and influence.This paper is divided into five parts:The first part is the introduction, it mainly introduces the background and significance of the topic, the domestic and foreign literature review and research method and research ideas.The second part is the basic theory of earnings management concept, it mainly expounds the concept of earnings management, theory basis, and summarizes the motives of earnings management behavior by the listed company.The third part is the present situation of earnings management by the real estate industry in our country, firstly, it analyzes the present situation of the real estate industry in China in 2007-2010 years through the whole financial index, secondly, introduces industry characteristics of the real estate industry from the point of view of the accounting emphatically, lastly, introduces the methods of earnings management of the real estate industry from the adjustment of revenue recognition respectively, adjust the cost at amortization, fair value measurement and asset impairment four aspects.The fourth part is the influence of earnings management of the real estate industry in China, it mainly expounds the influence of earnings management to enterprise, investors and the society as a whole separately from the positive and negative two aspects, and analyzes the negative influence by case, it has established the position and cleared the obstacles for the below suggestions.The fifth part is the proposal to the earnings management of the real estate industry, it gives three suggestions, such as putting forward the real estate industry accounting standards, perfecting external supervision mechanism, and so on.