Research On Earnings Management Of Agricultural Listed Companies

Agriculture is the foundation of the national economy, which plays an important role in the domesticeconomic development. However, the agricultural listed companies’ overall profitability is not high, and theearnings management phenomenon is widespread at the present stage. Earnings management has seriouslyaffected accounting information quality of agricultural listed companies, it misleads investors to make rightinvestment decision. The problem of agricultural listed companies’ earnings management needs to be solved.Based on that, researching on the problem of agricultural listed companies’ earnings management, verifyingthe existence of agricultural listed companies’ earnings management, analyzing the motivation and means ofearnings management. Statistical analysis method was used to verify the existence of agricultural listedcompanies’ earnings management, statistical analysis is based on modified Jones model, according to thecharacteristics of agricultural listed companies, the biological assets variables was added to modified Jonesmodel, and regression analysis was carried out on the new model. Through model calculations, the existenceof agricultural listed companies’ earnings management was verified. Theoretical analysis method was used toanalyze the motivation of agricultural listed companies’ earnings management, the motivation mainlyincludes: capital market motivation, tax avoidance motivation and executives change motivation. Theoreticalanalysis and case analysis methods were used to analyze the means of agricultural listed companies’ earningsmanagement. Firstly, using theoretical analysis to obtain the means of agricultural listed companies’ earningsmanagement, the common used means are such as: the use of related party transactions, time difference ofaccounting treatment, accounting policy choice and accounting changes, local government support. Secondly,using case analysis of green earth case to verify above four kinds of common used means of agriculturallisted companies’ earnings management. Through researching agricultural listed companies’ earningsmanagement, the governance countermeasure of agricultural listed companies’ earnings management was putforward, which help to improve the quality of agricultural listed companies’ accounting information, thereby,help investors to make right investment decision.