The Empirical Study On Earnings Management Of Real Estate Listed Companies Under The Fair Value

The fair value can provide more relevant information for the users of information. But italso has its drawbacks, the provisions of fair value is not detailed and specific in the age ofimperfect economic market and unsound accounting standard. The listed companies use it asnew means to manage earnings, manipulate its profits and provide false information to theusers. In today’s hot real estate market and fair value measurement attributes, the existenceand means of earnings management in listed real estate companies are research purposes, thissubject has great significance for the future development of the country. On the one hand, theresults can provide valuable empirical data for the real estate industry and provide sometheoretical guidance for future development of the fair value. On the other hand, the resultsprovide some practical guidance for investors and regulators.This paper takes listed real estate companies as research subjects, earnings managementas research object, analysis the impact of specific business on earnings management of listedreal estate companies, builds mathematical models to make empirical research and proposeinhibition recommendations against earnings management based on application of the fairvalue. This paper first introduces the characteristics of listed real estate industry, theory ofearnings management and the fair value, as well as the relationship. Secondly analysis theimpact on earnings management of listed real estate companies by application of the fairvalue in theory, generalizes the indicators, makes assumptions on this basis, then makestransformation model combined with the characteristics of real estate industry and buildsmodel used earnings management with the indicators model and control variables. It usesdatas for measure analysis of the extended Jones model of comprehensive industrycharacteristics, the extent of earnings management, the change, correlation and regressionanalysis by year. Finally, according to the empirical results, it proposes inhibitionrecommendations against the earnings management.