The Correlational Study Of Between Characteristic Of Corporate Governance Structure And Earnings Management Of Gem Listed Companies

Compared with the main board A-shore market, GEM listed company have poorer corporate governance, with a stronger earnings management motivation. Since the GEM market opening, gem companies'earnings management occur frequently, As accounting information is the object of earnings management and has close relation to corporate governance structure, it has great significance to do positive research on the correlation between earnings management and corporate governance structure of GEM listed companies. Therefore, it is of great significance through positive research to protect the interests of small and medium shareholders, promote gem companies management structure reform.The paper introduces respectively the conceptions of corporate governance structure and earnings management as well as some relative theories. Then it expatiates the motivations and means of earnings management as well as the characteristics of corporate governance structure and current situation of GEM listed country's corporate governance structure. It also discusses the correlation between corporate governance structure and earnings management from the point of theoretical analysis. Subsequently, according to the characteristic of GEM listed country, it chooses the 59 GEM listed companies which listed from the year 2009 to 2010 as samples, In the design of positive research, based on the analysis of existing earnings management measuring models, the extended Jones model is improved, and as a result, a new model is made and used in this paper. Some variables in direction, shares structure and board of supervisors are chosen as measure index of corporate governance structure, and some controlling variables are also chosen, discusses the correlation between the characteristic of corporate governance structure of the samples and earnings management from the point of positive analysis.The results show that when the board chairmen holds a concurrent post of general manager, earnings management action is easier to happen; when shares owning rate of directors is very low, it hasn't remarkable impact on earnings management action; the rate of independent directors has positive correlation with earnings management degree, and independent directors can't restrain earnings management action effectively; the rate of external supervisor has positive correlation with earnings management degree, and external supervisor can't restrain earnings management action effectively; earning management degree doesn't have correlation with shares owning rate of the first shares holders on condition that the biggest share holders hold absolute ruling status; the second to fifth shares holders'check degree to first share holders has the negative correlation with earnings management degree; shares owning rate of organ investor has negative correlation with earning management degree; asset-liability ratio and corporation size has positive correlation with earnings management degree.Finally, the paper makes some suggestions about how to perfect GEM listed company governance structure so that it can restrain earning management action.