An Empirical Study About The Effective Tax On The Earning Management

There is a famous proverb in western countries：two things of death and taxes cannever be avoided in human life. We can say that tax with a person’s whole life.Similarly， the enterprises from the beginning to establish，also accompanied by allsorts of taxes. In China’s tax collection system， government recognize the enterprise’stax indicator mainly depend on the accounting data and related behaviors. However， inthe actual operation， management authority is often base on their needs， through theircontrol of the company’s true accounting information， use accounting policies，accounting system，and related information asymmetry and contractual incompleteness，to adjust accounting data and related behavior deliberately， to reduce tax burden andsee their interest. Thus， the enterprise’s tax and business practices are closely related，which is one of the factors that affect earnings management. Promulgated in2007andimplemented in2008， the current corporation income tax will change the listedcompanies’ tax burden， the change of corporation income tax burden will affect thecompanies’ value， and will the market make the expected response? Are there anyexistences of earnings management behaviors due to income tax burden changes? Thestudy has found: earnings management of listed companies for the income tax changeswould give a positive reaction， as changes in income tax; there is clear tax avoidanceof listed companies of earnings management behavior.According to the above analysis， the thesis’s logical starting point depends on thedifference between accounting and taxable gain and loss， using a combination oftheoretical and empirical research method， through a comprehensive， in-depth studyof the current corporation tax law， which impact on the companies’ earningsmanagement degree. On one hand， in the hope of a breakthrough about theory andresearch method， systematicly analysis of relevant issues. Make up for lack oftheoretical research in this field; is also introduce some western literature for domesticreaders. The article discusses the main content of the following four parts:The first part of the first chapter describes the background and significance of thisstudy， research status in domestic and aboard， research ideas and methods.The second part is divided into the second chapter and third chapter， focusesprimarily on income tax and theory of earning management， discuss the relationshipbetween the income tax burden under the current tax law and earnings management.The third part is the fourth chapter， this part’s logical starting point depends onthe difference between accounting and taxable gain and loss do some relevant andempirical analysis and test through amendment Jones model and other model.