The Impact Of Real Earnings Management On Enterprise Performance

The Wall Street journal in2002, amid reports the financial fraud of Enron and WorldComaccounting fraud incident, two events opened the supervision of the listed company earningsmanagement behavior, promote the governments constantly to revise and improve the accountingstandards. In the situation, with the international accounting standards convergence of China’s newaccounting standards issued in2007, with the new accounting standards come on stage and increaseof securities market regulation, the traditional way of earnings management is limited by the great, therisk is becoming more and more high, and the managers of enterprises in order to balance the interestsof all aspects have to adopt a more concealed way for earnings management behavior, and by buildingthe actual trading activity or change the trading time, this new way of earnings management can be inimperceptible to whitewash statements under the condition of effect, and has the characteristics of therisk is small, so generally favored by management authorities of listed company. Existing surplusmanagement about real activities, such as disorder, at the end of the development costs of listedcompanies to promotions, discounts, most enterprises, the annual sale of fixed assets and intangibleassets, the enterprise outside the normal product demand increase output, etc.Research has shown thatreal earnings management behavior activity at the present growth trend in recent years, compared withthe traditional earnings management way, the real surplus management activities more hidden, safetyis higher, but the real surplus management behavior will produce adverse effect to the development ofenterprises, the theoretical circle hasn’t formed system conclusion, in this paper, according to the realsurplus management activities affect enterprise performance are discussed.This paper USES the combined research method of qualitative analysis and empirical test, inChina’s a-share listed companies as research samples, demonstrate real surplus management activitiesaffect whether the enterprise performance. In the theoretical analysis part, first of all for this article’sresearch background, purpose, significance, etc. are expounded, for real earnings management andcorporate performance of the related literature at home and abroad combing; Secondly, this papersummarizes the real earnings management and corporate performance of related concepts andtheoretical basis; Finally, based on real activities manipulation of the earnings management way, thereal surplus management activities are classified, namely, cost control, production cost control andcontrol of sales, the qualitative analysis of three kinds of control mode of surplus management effectson business performance. In the empirical part, firstly, based on the above theory analysis of realearnings management activity can the adverse impact on business performance of the hypothesis, then,collect the a-share listed companies in China07-08report data, excluding do not conform to therequirements of the study of the data, calculate the company’s actual earnings management degree, thequarterback method is adopted, categorizing the a-share listed companies, namely the sample company-real earnings management activities of listed companies, matching the sample company-does not exist and micro real earnings management activities of the listed company, the analysis ofsample company and paired samples in the future three years of financial performance and businessperformance, the results found that there are real surplus management activities of enterpriseperformance is generally lower than the sample company matching sample company, finally get theconclusion that to earnings management of listed companies to manipulate real activity will damagethe ability of the future management of the enterprise. At the end of the article, put forward the realactivity standardization surplus management with Suggestions for the improvement of corporateperformance.