The Empirical Research On The Relationship Between The Governance Structure And The Earnings Management Of China’s Family Listed Companies

The family listed companies make a big difference to promoting the perfection ofChina’s socialist market economic system and the sustained, rapid and healthydevelopment of China’s national economy, but China’s family listed companies’governance structure is not perfect, which is inevitable to provide the enormoussurvival space for the earnings management, and also has greatly affected thesustained and healthy development of China’s family listed companies. Therefore, inorder to promote the healthy and sustainable development of China’s family listedcompanies, and also in order to enrich the research content of the earningsmanagement and from the Angle of the corporate governance structure to find thesolutions to contain the earnings management, it is necessary to have the research onthe relationship between the governance structure and the earnings management ofChina’s family listed companies.This paper uses the combining method of the theory research and the empiricalresearch, through consulting the domestic and foreign research literature related to thefamily listed companies, the governance structure and the earnings management,reviews systematically the relative theory of the family listed company, the corporatemanagement structure and the earnings management, definitely including thedefinition of the family listed company, the governance structure and the corporateearnings management definition, the theory basis of the corporate governance and thecorporate earnings management, the present situation of China’s family listedcompanies governance structure, the root causes of the earnings management ofChina’s family listed companies, and the model of the earnings managementmeasurement’s selection, containing the method and the model of the earningsmanagement and the model testing result and the comparable result’s analysis, on thisbasis, respectively from the internal governance structure and external governancestructure, has the theoretical analysis on the relationship between the governancestructure and the earnings management of China’s family listed companies,specifically, the internal governance structure includes the ownership structure, thecharacteristics of the board of directors, the characteristics of the board of supervisors,and the characteristics of the management, and the external governance structureincludes the external audit, the capital market, the product market and the manager market; Combining with the above theory analysis, has the relevant empirical analysis,specifically, from the five aspects including the ownership structure, thecharacteristics of the board of directors, the characteristics of the board of supervisors,the management characteristics and the external audit, proposes16researchhypotheses, selects three years’ data to study from2008-2010, and through a series ofscreening selects67companies as the samples from the2010’s New Fortune500richlist, and selects the dependent variable, the independent variable and control variable,the paper’s earnings management level measurement model has had further correctionon the basis of section fixed Jones model, and comparatively analyzes the two models,and then, has the general empirical test and analysis on the relationship between thegovernance structure and the earnings management of China’s family listed companies;Finally, draws the conclusion: China’s family listed companies generally exists theearnings management phenomenon, and the first shareholder proportion, thestate-owned shares proportion, the independent directors proportion, the sharesproportion of the members of the board of directors and whether or not outside firmpass the significance test; And from the two aspects containing the internalgovernance mechanism and the external governance environment, puts sometreatment suggestions.This paper’s studies take the family listed companies as the research samples,which provide certain thinking for the research on the relationship between thegovernance structure and earnings management of other listed companies, and providecertain reference for perfecting China’s listed companies’ governance structure to curbearnings management.