The Research Of Earnings Management In Accounting Policy Change

Since the1980s, as exposure the phenomenon of general existence of earningsmanagement in western listed companies, a large number of foreign scholars havelocated to the management of listed companies to research on the behavior of earningsmanagement, and which starts the prelude of earnings management research. Theessence of earnings management is the management authorities which use all kinds ofmeans, purposely intervene or influence the results of the financial report, andfurthermore influence the benefit of enterprise and the decision making judgment ofother stakeholders. Earnings management is a closely related issue about protecting thelegal rights of investors and developing accounting standards, which is in the range ofaccounting standards, system, the laws, the regulations have permitted, uses the meansof the accounting policy choice, accounting estimates change and trading of planning.Accounting policy change, one important method of earnings management to themanagement operation, had been always the focus of attention of relevant governmentdepartment and the society. Accounting policy change is accounting policy choice, isthe important carrier of reflection of the economic consequences of.accountingstandards According to the reasons of the change, accounting policy change can bedivided into mandatory accounting policy change and voluntary accounting policychange. Voluntary accounting policy change is the enterprise management made thechoice based on enterprise's status, is the main component of the enterprise accountingbehavior..The research on the motivation of voluntary accounting policy change ofearnings management, can help the stakeholders of the listed company to have a deepunderstanding about the regulation of the securities markets aversion, avoiding way,operation profit means, which has important theoretical significance and practical valueto China's capital market development and the consummation, the reasonable allocationof resources, accounting system, establish and perfect the standard systemThe country's new accounting standards starts to implement to the listed companysince2007, the new guidelines announce many measures for regulating listedcompanies to profit operation for the purpose of earnings management, and also makesome revisions to the accounting policy choice, this paper is based on the change, whichselects the data of the year from2007to2010on about voluntary accounting policychange of the listed companies in China as research samples, and analyzes whether alisted company used the accounting policy change to operate the earnings managementand the relationship between corporate governance and earnings management.This paper is divided into six parts in research of earnings management inaccounting policy change. The first part is introduction, mainly introduced thebackground and purpose of the topic, the theoretic value and practical significance ofthe topic and the research framework and content; The second part is the related literature at home and abroad; The third part is the theory hypothesis and reasonanalysis; The fourth part is the empirical studies, we build income smoothing model,huge write-off model and policy the Lure model to the three types of earningsmanagement, and do motivation empirically research on accounting policy change andearnings management. The result is that: in income smoothing model, only the chairmanand general manager as two independent variable separation passes significant level of5%T test, and some passes the level of significance for1%of T test in the resolution ofthe model; In huge write-off model, only the chairman and general manager as twoindependent variable separation passes significant level of5%T test, and some passersthe level of significance for1%of T test in the resolution of the model; And in policythe lure model, the only independent variable frequency of the board meeting passessignificant level of10%T test, some passes the level of significance for5%of T test inthe resolution of the model. But the symbols of the last of independent variablecoefficient seems to deviate from the original hypothesis; The fifth part of the researchis conclusion analysis and the countermeasures and proposals, in view of the existingaccounting policy change by earnings management operation behavior, thecorresponding countermeasures include,(1) narrow the space of enterprise accountingpolicy choice,(2) perfect the accounting information disclosure system,(3) to increaseillegal divulgence financial information of punishment,(4) sound assessment system ofenterprise performance,(5)perfect the listed's internal management mechanism; Thesixth part is concluding remarks,,and points out that there is some deficiency in theresearch and the prospect for the further research in the future.