Earnings Management Research Under The Background Of The Current Accounting Standards

On the earnings management problem research began in the late nineteen eighties, but so far, theearnings management is still the accounting and economics research hotspot. With the rapid developmentof China’s securities market, the accounting information of communication as bridge between the prices ofsecurities and corporate value, its quality directly affects the level of stock market resource allocationefficiency. But long-term since, the earnings management of Listed Companies in our country widespreadpresence, seriously affecting the quality of accounting information, has become a great hidden danger ofsecurities market development. Accounting standards as the standard of accounting information productionand transmission standard, is one of the key factors of earnings management governance.In February15,2006, enterprise accounting standards system known as the milepost in the Chineseaccounting history formally promulgated, The standards fully absorb the international accounting practices,and fully consider China’s special economic environment and accounting environment. On the basis of theoriginal guidelines revised, a new series of accounting norms is added. But the current accounting standardsis the effective containment of China’s listed companies earnings management behavior or to leave morespace, theoretical circles has been debated since its enactment, but it hasn’t a unified conclusion until now.In this paper, combined with the current domestic and foreign listed companies earnings management newtrend, to the current accounting standards as a starting point, through discussing the relation between thecurrent accounting standards of our country and the earnings management of listed companies, I putforward to perfect the relevant proposal of accounting standards construction finally. Specific content includes:The first chapter mainly elaborates the research background and the significance of earningsmanagement under the background of the current accounting standards, presenting the research methods,thinking and frameworks.The second chapter is the domestic and foreign literature review, This paper, from the earningsmanagement basic theory and empirical aspects of literature at home and abroad are reviewed.The third chapter is the earnings management related theory. Firstly, introduce the definition and basiccharacteristics of earnings management, and then analyzes the theoretical basis of earning management: theefficient market theory, principal-agent theory and asymmetric information.The fourth chapter discusses the relationship between current accounting standards and earningsmanagement. Accounting standards and earnings management is not only with the use of between therelationship, but also restricted and the constraints of the relationship. There are lasting game relationbetween accounting standards and earnings management; The paper also analysis expected influence of thecurrent accounting standards on the earnings management, the criterion fully reflect the internationalconvergence and the concept, reduce the choice of accounting estimates that the project, compressed thelisted company earnings management of space, but to increase the correlation of accounting information,standards objectively also make the space of earnings management has expanded.The fifth chapter is the part of empirical analysis, it includes the research hypothesis, sample selection,model and the empirical results and analysis. Based on the analysis of the above, this paper put forward thehypothesis that the implementation of the current accounting standards is effectively to contain the marketcompany earnings management behavior, this paper selects2003-2010Shanghai stock exchange447 companies the disclosure of the annual report data as research samples, from surplus smooth and specialpurpose earnings management investigate earnings management, the inspection indexes showed thathypothesis was set up.The sixth chapter is the conclusion and suggestion. The results of the study show that, theimplementation of new accounting standards narrow the listed company earnings management of space,and inhibition the listed company earnings management behavior. Under the background of theimplementation of present standards, to avoid stakeholders by a listed company of excessive earningsmanagement behavior and suffer a loss, we should enhance the recognition of earnings management ability,and take some preventive measures. Finally, the paper explained the innovation points and the limitation ofresearch, and puts forward some problems to be studied further.