Study On The Influence Of The Implementation Of New Acconting Principles To Real Earnings Management

Listed company uses various ways to manage earnings, including accruedearnings management and real earnings management. Accrued earnings managementis to say that the enterprise performs the choice of accounting within the accountingstandards which try to cover up the real economic performance; Real earningsmanagement is to say that the enterprise structures abnormal business from realbusiness activities to manipulate the behavior of the profits. At present, the researchesof earnings management beyond count, however the domestic researches mainlyfocus on accrued earnings management, compared to the accrued earningsmanagement, the research of the real earnings management aspects of our country isin the early stage, and the real earnings management aspects of the empirical literatureis numbered.From the implementation of the new accounting standards angle, the newenterprise accounting standards issued in2006year on the one hand gives enterprisemanagers more space of accounting professional judgment and choice, on the otherhand, restricts some opportunism abuse earnings management behavior. Because ofthe strong links between accounting standards and earnings management, theformulation and implementation of accounting regulation will directly affect thedegree and frequency of earnings management, as a result indirectly affect realearnings management level. Whether the real earnings management exists or not, howthe implementation of new accounting standards affect the real earnings managementlevel of the listed company will be the problem that standards makers and regulatorsare more concerned and also be the question that this paper mainly focus on.For this, the research to real earning management mainly contains the followingfour aspects.The first part mainly reviews about the present situation of the real earningsmanagement under the premise of the research background, then discusses the relationship between the accounting standards and earnings management and theinfluence of the implementation of the new accounting standards to the real earningsmanagement level of the listed company.On the base of the review of theory and related literatures, the second partmainly empirical studies the existence of the real earnings management. This part firstanalyzes the real earnings management’s motivation and behavior, and puts forwardthe hypothesis of the existence of the real earnings management in the listed companywith low profits and allotment; Second, list the samples and data that this paper used;Third, design variables and construct models. This paper mainly reference three realearning management models of Roychowdhury（2006）to design the abnormal cashflow (ACFO), abnormal expenses (ADisexp) and abnormal production cost (AProd)variables, and also the three comprehensive measuring index (RM_Proxy) of Cohen（2008a）.To the accrued earnings management,this paper mainly use the accruedprofits that can be controlled which were calculated through the Jones models. Basedon this,it builds the existence models of the real earnings management;Finally,through using the spss16.0to regression, this paper finds that the relationship of theaccrued earnings management and real earnings management is complementary notalternative, and that the listed company with low profit and allotment can show lowerabnormal cash flow (ACFO), lower abnormal expenses (ADisexp), and higherabnormal production cost (AProd), which prove the existence of the real earningsmanagement.The third part is mainly about the empirical study of the influence of theimplementation of the new accounting standards to the real earnings managementlevel. Based on the existence of the real earnings managements and theory analysis,this part first puts forward the hypothesis of the influence of the implementation of thenew accounting standards to the listed company with low profit and allotment, also tothe other listed company as control group; Second, design variables and construct themodel that the implementation of the new accounting standards affect the realearnings management level of the listed company; And then using the spss16.0software to play the regression analysis,it find that the implementation of the new accounting standards can obviously promote the listed company with low profit andallotment to use the real earnings management, but to the other listed company ascontrol group, the influence is not obvious.The fourth part mainly lists this paper’s main research conclusion and innovationpoints, deficiencies and the follow-up research direction.