The Research On The Relations Between The Characters Of Managers And Earnings Quality

As we all know, in December2001, Enron filed for bankruptcy protection; in June2002World Communications cook the books events such as the emergence of a series of corporate scandals "completely undermined investor confidence in capital markets. Joan China source, red light industrial and financial fraud case in China. Those behind the fraud, because there is a problem in corporate governance mechanisms. However, if you reflect on these events, we will find that we have neglected a very important issue:when we assess the operating performance of a listed company, only to see a surplus "quantity", but did not see the "quality" of the surplus.The typical characteristics of modern enterprises, the ownership and control of the separation of ownership and managers in control of the enterprises the right to the allocation of resources and accounting information generation process.In the production process of the surplus of information, managers may be from their own interests to manipulate the earnings quality. With the gradual application of the Population Studies in Management, scholars from the perspective of the psychological characteristics and demographic characteristics to study the managers’ behavior, manager background characteristics point of the study conducted by a hot spot in recent years, had just begun problem.Executives of listed companies had direct control over the generation process of the surplus of information, and thus the level of earnings quality is directly affected by the executives. Scholars in the past from the perspective of senior management on earnings quality research, such as managerial ownership, executives change, however, senior management and earnings quality studies assume that executives are homogeneous, there is no individual differences in the. So, two questions arose:If we relax the assumption of the executives of homogeneity, the conclusions of the study of the past, scholars still hold? Executive background characteristics (ie, executive heterogeneity) whether the earnings quality impact? Of these two issues have important theoretical and practical significance, however, so far, no scholars have conducted intensive research.Based on previous research and theory, the paper argues that the research company earnings quality, taking into account the manager’s background characteristics that may affect the validity of the conclusions of the study. The background characteristics of the management of the population likely would be the company’s earnings quality have a direct impact. Of managers of background characteristics and the relationship between earnings quality to enrich the executive background characteristics, and research in the past, scholars, based on earnings quality issues further deepening and refinement of great significance. A theoretical analysis and empirical research on the above problems and corresponding countermeasures and suggestions based on the findings of this article.2007-2009Shenzhen and Shanghai A-share listed companies as our sample, tested the relationship between the executive background characteristics and earnings quality. This article listed companies is a common practice in earnings manipulation. Earnings quality of the state-owned enterprises and non state-owned enterprises do not exist significant differences, but the executives of state-owned enterprises and non state-owned enterprises background characteristics (including age, gender, educational background of the executive team tenure, team size) there are significant differences, and non-state-owned enterprises executives age, gender, educational background, tenure, team size were significantly higher than the state-owned enterprises.This article uses a multiple linear regression method proposed in this paper five hypotheses to an empirical test, multiple regression results show that:the executive team characteristics will the quality of corporate earnings have a significant impact. Executives age and earnings quality in the full sample case: there is a significant negative correlation, the greater the average age of the executives of listed companies, earnings quality, the better; executives gender and earnings quality has a significant positive correlation, that is, with men executives compared to female executives more help to improve earnings quality; executive tenure and earnings quality has a significant positive correlation, that is, the longer the executive office, the worse the earnings quality, the longer term, executives in the company more contacts and relationships, the manipulation of earnings, the resulting "assistant" and their accomplices, the more, the relationship is more solid. This paper was not found to executive education background and senior management team size has a significant impact on earnings quality.Multiple regression on the sample in accordance with the corporate nature of the grouping and the grouping has been found that more research. In the group of state-owned enterprises, executives age, gender, educational background, tenure and earnings quality there is a significant correlation, there is a significant negative correlation between executives age, education, and earnings quality; executives gender significant positive correlation between executive tenure and earnings quality; working years earnings quality were shown to significantly positive correlation between non-state-owned enterprise group, executives sex. The above results show that the earnings quality of a listed company must take into account the executive background characteristics, in the course of the study should also consider the nature of the different enterprises, executives differences of background characteristics of the impact of earnings quality.This study includes three parts of the Introduction, body and conclusion and enlightenment to a total of six chapters.Thse firsdt padsrt Chapter1:Introasdduction. Intrdsaoduces the rwqeesearch backgfsffround of the asaproblem, signifiascance and innovation of this study and listed in the framework of this study and the researcadash methadsods used.The secondasd pddaart oaf thea bodadsy padasrt, tadhe casdore content of thwis aaerticle, inercluding Chaptasaaer2to Chaadaspter4, a totadal of twerhree chapters. Chawerpter2:Theorsadetical Anaerwlysis and Literatwerure Review. First, the meaning of earnings quality, executive, executives, background characteristics were defined. Earnings quality refers to the decisions of users of accounting information accounting earnings and accounting earnings forecasts in the ability of future net cash flows. If accounting earnings have higher cash flow level of protection, then according to the ability of accounting earnings forecast future net cash flows strong, accounting surplus of decision-making relevance of accounting information users, accounting earnings of higher quality; accounting surplus is lower quality. Senior management in management positions, board members, supervisory board members, general manager, deputy general manager, chief financial officer (or chief financial officer), chief economist of the Secretary of the Board and so on.Selected executives age, gender, educational background, tenure, executive background characteristics, defined by the five aspects of team size.Then were reviewed and summarized in this paper based on the theoretical basis. According to the research purpose, we selected the team theory, higher order theories, principal-agent theory, human capital theory theory as the theoretical basis of this article.Literature review of executive background characteristics, according to scholars, executives background characteristics and corporate performance, executive background characteristics and investment executives background characteristics and strategic choices of the literature review. Earnings quality review of the literature, this article points to the internal corporate governance and external corporate governance factors of two in terms of earnings quality, a systematic review and analysis.Theoretical analysis and literature review on the basis of the five research hypothesis:executives age is positively related to earnings quality of listed companies, female executives accounted for the higher the proportion of the senior management team size, the higher the earnings quality, senior managementhigher education, the higher the earnings quality, executive tenure and earnings quality negatively related to executive team size and earnings quality is positively correlated.Chapter3:Research design. In this section, the analysis of data sources, and design the corresponding variable. According to the study purposes, this article uses a multiple linear regression model to test the assumptions of the former. Data selection and variable design, this article provides the theoretical basis and reasons. Finally, the article listed in this article used in the multiple regression model.Chapter4:Empirical results. The first sample of the overall status of the descriptive statistical analysis. Then, we conducted a correlation analysis found that this variable does not exist a serious multicollinearity problem. Univariate analysis results initially proved the assumption of this study. Finally, multiple linear regression analysis, and regression results are analyzed and explained. In order to ensure the robustness of the results of this study, this paper uses three methods (variable substitution) and a sensitivity analysis on this article. The sensitivity analysis results show that the findings of this article is not a significant change in the model and variables is reasonable in design, research findings are robust.The third part, Conclusions and Implications section. This chaadpter sumae ermaasa rizes teerhe precas saeee dering there’re oastffical aner lysis, combasdined with the results of empirical analysis, and summarizes the full text of the conclusions, recommendations and research limitations and suggestions for subsequent research.Significance and innovation of this study are:First, the expansion of executive background characteristics, earnings quality, respectively, from the executives of the age, gender, educational background, tenure, team size and five, respectively, to examine its relationship with earnings quality, to see which characteristicshelp train the senior management of high-quality;Second, a variety of theory-based, such as the top echelon theory, principal-agent theory, group theory, human capital theory, in-depth analysis was to investigate the problem from multiple perspectives;Third, in the course of the study, this article uses a combination of empirical and normative research questions;Fourth, we take full account of the stake in China’s "dominance" and "absence of owners," and other special characteristics, and control them. Property rights nature of the earnings quality of the state-owned enterprises and non state-owned enterprises, executives and background characteristics in the course of the study, according to the statistical analysis, more research, makes this study more plump and perfect.According to the findings of this article, the article suggests:(1) in the recruitment of senior management of listed companies should executives age, gender, tenure, and other background characteristics included in the scope of the study, which provide investors with a higher quality of earnings information;(2) in the highpipe appointment listed companies should be bold to enable female managers, and appropriately increase the proportion of female executives, promote the diversification of the management staff;(3) China should farther improve the appointment of executives of state-owned enterprises.Based on the original, modest introduction of market competition mechanism, breaking the "iron rice bowl" system of planned economy era, the market competition mechanism executives appointed by the optimization;(4) to further accelerate our manager market development, improve the managerpeople file management, the formation of a fully competitive mechanism. Through the improvement of the manager market, to constrain the manager’s moral hazard and adverse selection;(5) improve disclosure of listed companies to further improve the effectiveness of the capital markets.This article findings we can better improve the earnings quality of listed companies have a certain significance, also has some guiding significance to the corporate human resource management in practice.