Meeting Analysts’Earnings Forecasts’Public Companies’Earnings Management

Securities analysts as the link between investors and financiers in the market, playing an important role in improving the operational efficiency of capital markets, Securities analysts’ earnings forecasts is becoming that is the basis of investor decision-making in the capital market, therefore, the behaviors and the effects of securities analysts’ earnings forecasts are concerned by scholars. Domestic and international studies that have found:the management of public companies are in order to avoid negative "earnings surprise", taking action to release information to guide the analyst earnings forecasi, while foreign research that also found.the management of public companies will adjust the earnings to meet analysts’earnings forecasts. But the direction and the degree of the adjustment are not discussed in depth by the domestic and foreign scholars. The purpose of my study try to explore that:the management of public companies in China which will make the behavior to meet analysts’earnings forecasts, but also the direction and the degree of the adjustment.The results show that the companies which are at0%to20%analysts earnings forecast error range, more than20%and0%-20%ranges will be in order to meet analysts’ earnings forecasts. And the companies which are at0%to20%forecast error range are more positive to adjust their earnings comparing with which are at20%or0%-20%earnings forecast error range.But the companies are less than-20%analyst earnings forecast error range, their adjustments are with no significant correlation. At the same time, the companies that get more attention would meet analysts’earnings management in higher degree, comparing with which get lower attention. And the conclusions of the article have passed the robustness test.