The Empirical Research Of Earnings Management In The Perspective Of Fair Value

With the rapid development of economies and continuous improvement of capitalmarkets, the use of fair value measurement attribute is become inevitable in the future,China ministry of finance promulgated new accounting standards in2006whichre-introduced fair value measurement，the new accounting standards verified theimportant of fair value measurement again, however, the followed problems thatearnings management become more and more serious make a lot of managementscholars question the fair value measurement once again, this paper’s view on thisquestion is that we should no longer focus on whether the property should bemeasured at fair value, but how to inhibit the listed company’s earnings managementbehavior on the basis of fair value measurement.First of all,the paper reviews the main results and models of empirical researchon earnings management both in domestic and foreign, and then we take themanufacturing companies as example, analyze the application of fair valuemeasurement attribute in the debt restructuring, the recognition and measurement offinancial assets and investment real estate as well as the provision for impairment ofassets, and how managements of manufacturing companies carry out earningsmanagement using these accountancies, hereafter, the article establishes a model insupport of these theories which use impairment of assets losses, fair value gains,investment income and operating income as alternative explanatory variables for ourempirical research, we use the model to confirm the mentioned variables internalassociated with earnings management,and then verify the hypothesis mentioned inthis article.From the results of empirical research, manufacturing companies may indeed usethe provision for impairment of assets, debt restructuring and disposal of financialassets and other investments to carry out earnings management behaviors, however,the relationship between fair value gains and earnings management is not significant,we analyzes the reasons for this result, and finally arrive at the main conclusions ofthis paper. Finally, this paper provides some countermeasures from all angles for theearnings management behaviors of manufacturing companies’ management on thebasis of fair value measurement attribute; we hope these suggestions will have acertain practical significance in restraining earnings management behaviors of listedcompanies.