An Empirical Research Of The Effect Which The Executive Background Characteristics Produce On Earnings Management

At present, earnings management is still a hot topic in corporate governance. Along with the wide application of practice, scholars are strengthening the research of the earnings management effect factors. As a main manipulate subject of earnings management, the company of top management behavior characteristics of earnings management has become the important influence factors. A large number of domestic and foreign emerge on executive pay; executive shareholdings and executive left the ownership of earnings management impact study, to analyze the relationship between executive behavior and earnings management. But, from a psychological point of view, people’s behavior and decision are all the driven results of their nature background characteristics. That is the background characteristics will affect people’s behavior decision-making. According to this view, the paper holds that the executive background characteristics will affect their behavior decision-making in the management of the company. The existed research results also proofs this hypothesis. The foreign and domestic research results on the relationship between executive background characteristics and company performance, company growth, financial restatement behavior suggest that executive background characteristics would impact the company’s operating decision-making. But, China’s academic study on executive background characteristics is still at an initial stage and there is little research result on the field. Starting to analyze its impact on earnings management behavior is rarely seen from the executive background characteristics. Today, corporate governance environment is complex and executive cognitive capacity is limited. In the face of many complex situations, they will make decisions based on their own experience and values driven by their background characteristics. So, to study the impact on earnings management from the point of view of the executive background characteristics is practical significance. Based on the theoretical analysis, the paper studies the relationship between executive background characteristics from the proportion of males, education, age, tenure and violation records and earnings management.The paper is divided into six parts and each part of the main content is as follows:Part one:Introduction. This section introduces the research background, significance, research methods, content and framework, the expected contribution.Part two:Literature review. This section reviews the foreign and domestic literature on two aspects of executive background characteristics and earnings management. And then make some comments on them.Part three:Theoretical basis. This section introduces the theoretical basis on executive background characteristics and earnings management.Part four:Research assumptions and design. This section firstly analyzes the original theories of the executive background characteristic and the earnings management, and puts forward the five research assumptions. Secondly, the author selects and defines the research variables and builds the econometric models of earnings management. Then, the author builds a multivariate regression model to test and verify the relationship between the executive background characteristics and the earnings management.Part five:Empirical test and analysis. This section chooses315listed manufacturing companies as the sample to test and verify the relationship between the executive background characteristics and the earnings management, and obtains the empirical research results.Part six:Conclusions and recommendations. This section summarizes and analyses the empirical research results, and puts forwards the relevant recommendations.