The Research On Earnings Management For Chinese Listed Companies In Real Estate Industry

The constant perfection and improvement of market mechanism in recent years prompt the quick development of the Chinese capital market, especially for the stock market. For the listed companies, the most concerned issue is how to realize the financing aim under the restriction of the current accounting standards system and the relevant regulations of the stock law, and the earnings management is gradually formed and developed under this background. At present, with the constant aggravation of competition in the capital market, the earnings management of the listed companies is increasing severely especially for the real estate industry. The excessive earnings management of the listed companies in the real estate industry will affect investors’decisions even the healthy development of the stock market. The purpose and means of earnings management are diverse in different period just as the influence it exerts. Therefore, this paper takes the listed real estate companies for example to analyze their earnings management behaviors with the help relevant theories and research methods which contribute to disclosing the motivations and methods of earnings management. The research in this paper mainly contains the following aspects:Firstly, this paper analyzes the research background of the topic and summary the domestic and overseas research results in order to find out the entry point of this thesis. Secondly, elaborates the definition, objectives and methods of earnings management of the listed real estate companies which have the directive function for disclosing the intension of the earnings management behaviors. Thirdly, this thesis analyses the present situation for earnings management of Chinese listed real estate companies and makes an empirical analysis with the help of relevant data which demonstrate the existence of earnings management. What more, this paper finds out that companies always tend to use negative earnings management, on the contrary, they will use positive earnings management during the economy recession in order to achieve effective smooth in each year. Finally, the thesis presents some relevant countermeasures and recommendations for the earnings management in Chinese real estate industry which include perfecting enterprise accounting standards, strengthening the outside supervision, enhancing the corporate governance structure, improving the delist system, intensifying the accounting information announce, perfecting the associated business, strengthening the punish power for illegal behaviors and improving the staff quality which can normalize the earnings management of Chinese listed real estate companies.