| Accounting policies are basis which accounting information generated, and important aspect of enterprise accounting system accounting, policy choice can affect the quality of financial information directly, thus affect the majority of users of accounting information to make correct decisions. In 2006, China issued new accounting standards, which require enterprises to classify financial assets with the management intent, for the classification on the same type of financial assets to available for sale financial assets or trading financial assets will cause different financial results of companies, rights on choosing the classification of financial assets becomes a new trick for listed companies to achieve a certain goal. Based on this, this paper took a-share listed companies as the research sample to carry out a study on earnings management behaviors that established on the basis of choices of accounting policy on financial assets.This paper first defined accounting policies and accounting policy options, introducing theory of earnings management building on the accounting policy choice, and combined of internal and external factors of enterprises, indicating the necessity of accounting policy choice. this paper then analyzed the motivation of listed companies using the accounting policy of financial assets for earnings management. then, this paper carried out an empirical study on motivations of choices of the financial assets classification for earnings management by using methods of descriptive statistics,correlation and regression test. The results show that:enterprise scale,debt ratio,holdings of financial assets and growth ability all have a significant impact on financial assets classification in listed companies; but operating results only has a weak impact of it. Finally, based on summarizing conclusions of the inspiration study, this paper presented some suggestions to eliminate earnings management on financial assets classification in listed companies. |
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