Empirical Study Of Small And Medium Sized Listed Companies Governance Structure And Earnings Management

In recent years, earnings management has become a research focus in accounting theory, which not only undermined the confidence of investors, but also interfere with the normal operation of the capital market.However, the equity of the current system is imperfect and accounting earnings management reform makes the situation more complex.Numerous studies show that corporate governance is an important factor of earnings management.Earnings management is a conflict of interest between stakeholders of the results, and corporate governance is an effective mechanism to coordinate among different stakeholders, then the validity of corporate governance is bound impact the earnings management behavior.In the current stage of development and capital market laws and regulations, corporate governance structure has become a major constraint mechanism of eaarnings mangement of listed companies.Small and medium sized listed companies as an important component of listed company,it has a major impact to China’s economic development, but due to the imperfections of its governance structure, making the earnings management behavior in small and medium sized listed companies had frequently occurred.Based on this, This article from the perspective of governance structure of small and medium sized listed companies, research the relationship between governance structure and earnings management and to explore the impact of earnings management of listed SMEs governance structure variables, in order to provide relevant recommendations to improve the governance structure of listed SMEs.At the same time can also provide a theoretical basis for regulators to develop regulatory policies and corresponding laws and regulations, norms and become more reasonable and effective accounting practices of listed companies, inhibit the occurrence of earnings management, ensure the development of China’s capital market more efficient and healthy.The contents of this article is divided into the following five sections: The first part presents the background of this article, and pointed out theoretical and practical significance to explain the need for this article.also proposed a basic framework and research methods of This article.Finally, to illustrate the innovation.The second part describes the relevant theory.First, the basic theory of earnings management, through the return of literature to explain the definition of earnings management, and summarizes This article on the definition of earnings management, earnings management features that, combined with small and medium sized listed companies in China Characteristics of earnings managementthe motivation and use of common means.Secondly, the structure of small and medium corporate governance theories of the exposition, including small and medium sized listed companies, the definition of related concepts, the theoretical return of corporate governance, the governance of smal and medium listed companies structural features.Finally, domestic and foreign research governance and earnings management relations literature review found that study abroad there are different characteristics.The third part is the research design section. First,this article selecte266listed companies in Shenzhen SME Board’s2009data as the empirical research samples.Second, review the measure of earnings management model, which mainly include accruals separation, specific items method, distribution of test, these methods are from a different angle to measure earnings management.And in accordance with the characteristics of China’s capital market and the actual operability,selected cross-section of the Jones model as a model for this measure of earnings management.Finally, governance structure of listed companies with small features, features from the management, ownership characteristics, board characteristics, characteristics of the board of supervisors made four underlying assumptions of this article.The fourth part is the empirical analysis.First, the use of small cross-section of the Jones model to measure earnings management of listed companies and found that the existence of small and medium sized listed companies in the phenomenon of earnings management.Secondly, the sample company’s four-year data for the explanatory variables descriptive statistics to find its inherent characteristics.Finally, regression analysis the establishment of small and medium corporate governance structure and earnings management variable the regression model.The fifth part is the recommendations proposed in this article, put forward relevant recommendations from all aspects of corporate governance through the empirical results and the characteristics of small and medium sized listed companies themselves, and proposed to improve the securities market regulatory system, to improve the level of governance structure of small and medium sized listed companies,which can effectively inhibit the occurrence of earnings management.Innovation of this article1, this article from the perspective of small and medium sized listed companies corporate governance structure to research earnings management, To improve the governance structure of listed SMEs.2, in order to research more reasonable and effective, Combine with the features of governance structure of listed companies, This article introduces the executive control, the ultimate control to research earnings management.More comprehensive analysis of corporate governance and earnings management relations.3, this article is the latest selection of sample data, all the indicator data are updated to the December31,2009.So that the final empirical results obtained are more effective.